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.
In case you still have your doubts, contact us on 9811333901.
For UPSC Prelims Resources, Click here
For Daily Updates and Study Material:
Join our Telegram Channel – Edukemy for IAS
- 1. Learn through Videos – here
- 2. Be Exam Ready by Practicing Daily MCQs – here
- 3. Daily Newsletter – Get all your Current Affairs Covered – here
- 4. Mains Answer Writing Practice – here
