2016 · Q7
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
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UDAY, the Ujwal DISCOM Assurance Yojana, was launched by the Ministry of Power in November 2015 to address the accumulated losses and unsustainable debt of State-owned power distribution companies. Its mechanism was that participating States took over seventy five per cent of discom debt over two years by issuing State bonds, with the balance restructured, coupled with operational commitments on aggregate technical and commercial losses, tariff revision and metering. The object throughout is the financial health of the distribution segment, so (d) is correct.
- Option (a) describes start-up support in renewable energy, which belongs to no part of UDAY.
- Option (b) describes household electrification, which was the object of the Deen Dayal Upadhyaya Gram Jyoti Yojana and later Saubhagya, and is the strongest distractor because it is also a power sector target of the same period; it fails because UDAY addresses the balance sheet of the distributor, not connection of the consumer.
- Option (c) describes fuel substitution in generation, which is generation-side policy and outside a distribution reform scheme altogether. The governing distinction is between generation, transmission and distribution: UDAY operates only on the last of the three.
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