The Punjab Government proposed to issue Special Securities of a notified amount of Rs 559.12 crore, under the Ujjwal Discom Assurance Yojna Scheme (UDAY).
UDAY is optional for all States. However, States are encouraged to take the benefit at the earliest as benefits are dependent on the performance.
Power Ministry had launched the Ujjwal DiscomAssurance Yojana (UDAY) in November last for revival of debt ridden power distribution companies (DISCOMs) in different states.
Allotment of securities and settlement will take place on September 23, the Reserve Bank said in a statement.
Here are 8 things to know:
- The securities will have a face value of Rs 100
- Securities will be issued in equal strips with a maturity at the end of 6th, 7th, 8th, 9th and 10th year.
- An investor will be required to purchase entire structure and the bid amount will be uniformly distributed across all tenors.
- The minimum size of bid will be Rs 100 crore.
- Base rate will be the yield on FIMMDA 10 year Government of India G-sec yield as at close of September 21, 2016.
- The uniform spread (with a cap of 75 bps over 10 year GoI FIMMDA yield) offered by the bidder will be added to the base rate to arrive at the coupon to be paid on semi-annual basis.
- Successful bidders will be determined on the basis of competitive spread.
- The Reserve Bank of India will have the discretion to accept or reject any/all bids at its sole discretion.