UPSC Prelims 2016 Q7: Indian Economy – Infrastructure & Industry
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
Answer: (d) Providing for financial turnaround and revival of power distribution companies
Explanation
UDAY (Ujwal DISCOM Assurance Yojana)
Launched in November 2015 by the Ministry of Power.
It aimed at the financial turnaround of State power distribution companies (DISCOMs).
| Feature | Detail |
|---|---|
| Debt takeover | States took over 75 percent of DISCOM debt (as on 30 September 2015) |
| How | By issuing State bonds |
| Efficiency targets | Cut AT&C losses to 15 percent |
| Cost gap | Close the gap between cost of supply and revenue |
The options checked:
| Option | Actual scheme |
|---|---|
| (a) Assistance to start-up entrepreneurs in renewable sources of energy | Not UDAY |
| (b) Providing electricity to every household by 2018 | Saubhagya and DDUGJY |
| (c) Replacing coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants | No such scheme |
| (d) Financial turnaround and revival of power distribution companies | UDAY |
Answer: (d) Financial turnaround and revival of power distribution companies.
Why each option is right or wrong
- (a) Incorrect. UDAY does not fund start-up entrepreneurs in renewable energy.
- (b) Incorrect. Electricity to every household was the aim of Saubhagya, not UDAY.
- (c) Incorrect. UDAY does not replace coal-based power plants with other sources.
- (d) CORRECT. UDAY is for the financial turnaround of power distribution companies.
Key point
UDAY (2015): States take over 75 percent of DISCOM debt through bonds; targets lower AT&C losses and a smaller cost-revenue gap.
Remember
UDAY = revival of power distribution companies.
Common mistakes
- Confusing UDAY (DISCOM finances) with UJALA (LED bulbs).
- Linking UDAY to household electrification, which was Saubhagya.
- Thinking the Centre took over the debt; the States did.
Exam tip
UDAY = DISCOM debt. UJALA = LED bulbs. Saubhagya = household connections.
Sources
- Ministry of Power — Ujwal DISCOM Assurance Yojana (UDAY)
- Press Information Bureau — Cabinet approves UDAY (5 November 2015)