The Centre has said, the interest cost of states participating in the Ujwal Discom Assurance Yojana (UDAY) has been reduced by 11,989 crore rupees for the first nine months of this year, as compared to the previous financial year. Union Power Minister Piyush Goel in a written answer in the Rajya Sabha today said the inbuilt control mechanism of the scheme ensures that there is no debt piling up. <br/><br/>He said the scheme provides for debt financing by banks and financial institutions to DISCOMs only for working capital. He further said, the UDAY scheme provides that state governments should take over future losses of DISCOMs in a graded manner. He added, financing of DISCOMs will be done through bonds issued by State Governments or by the DISCOMs backed by the states.