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.
