The Cabinet has cleared financial restructuring of debt of power distribution companies under a new scheme namely Ujwal DISCOM Assurance Yojna(UDAY). It provides for the financial turnaround and revival of Power Distribution companies (DISCOMs), and also ensures a sustainable permanent solution to the problem. <br/><br/>Power Minister Piyush Goyal said Rs 4.3 lakh crore of debt have accumulated with discoms in the country and it has diminished their capacity to buy additional electricity.<br/><br/>He said the restructuring plan is conditional on mandatory metering, use of smart meters and coal swapping for generating cheapest power. Mr. Goyal said states can take over 75 percent of the debt of discoms and can issue government security linked bonds. Rajasthan, Uttar Pradesh , Tamil Nadu and Haryana distribution companies are the most loss making entities. The minister said UDAY will accelerate the process of reform across the entire power sector and ensure that power is accessible, affordable and available for all.