A Lot Rides on UDAY
June 29, 2016
In November 2015, Minister for Power Piyush Goyal announced a new program to bail out India’s struggling electricity utility companies, the Ujwal DISCOM Assurance Yojana (UDAY). Weakness in the electric power sector remains one of India’s biggest obstacles to faster human and economic development. UDAY is not the first attempt to bail out the struggling state electricity utilities, but it has developed fairly strong momentum, and it has crucial features in terms of timing and commitments that make it qualitatively different from past bailouts. UDAY’s success is critical for India’s attempt to expand electricity access and for “Make in India.” Perhaps most notably for the Obama administration, UDAY can provide fiscal space for India to meet its significant clean energy commitments.