Q: Which one of the following is a purpose of `UDAY’, a scheme of the Government?
a) Providing technical and financial assistance to start-up entrepreneurs in the field of renewable sources of energy
b) Providing electricity to every household in the country by 2018
c) Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time
d) Providing for financial turnaround and revival of power distribution companies
The correct answer is Option 4.
- Ujwal DISCOM Assurance Yojana (UDAY)
- It was launched by the Ministry of Power in 2015.
- It is a financial restructuring and efficiency enhancing program.
- It aims to reduce the debt burden of the state-owned electricity distribution companies (DISCOMs) started. Hence, Option 4 is correct.
- Though the main component of UDAY is debt management, other measures like raising operational efficiency are also proposed to permanently settle the debt scenario of DISCOMs.
- Objectives of UDAY:
- Improving operational efficiencies of DISCOM.
- Reduction of cost of power.
- Reduction in interest cost of DISCOMs.
- Enforcing financial discipline on DISCOMs through alignment with State finances.
- Scheme aims at financial turnaround and revival of Power Distribution companies (DISCOMs) and ensures a sustainable permanent solution.
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