UPSC Prelims 2016 · Question 32 of 98
UPSC Prelims 2016 question on UDAY Power Distribution Revival
- ExamUPSC CSE
- Year2016
- PaperGeneral Studies Paper I
- SubjectInternational Relations
- TopicCurrent Affairs
- DifficultyEasy
- TypeDirect
Which one of the following is a purpose of ‘UDAY’, a scheme of the Government?
Show answer
Answer: D. Providing for financial turnaround and revival of power distribution companies
Verdict
The answer is providing for financial turnaround and revival of power distribution companies. UDAY is a discom rescue scheme.
Analysis
Ujwal DISCOM Assurance Yojana was approved by the Union Cabinet on the Ministry of Power's proposal to give distribution companies a financial turnaround and a durable solution to their losses. Under it, State governments took over seventy five per cent of discom debt as of September 2015, half in one financial year and a quarter in the next, with the balance to be restructured. The renewable start up, household electrification and fuel substitution options describe other energy schemes of the period rather than UDAY.
Source
Economic Survey and The Hindu reporting on UDAY.
How to crack it
Decode the acronym, since Ujwal DISCOM Assurance Yojana names its own beneficiary, and a scheme whose title contains DISCOM must be about distribution companies rather than about generation or consumers. Keep the power sector schemes of this period separated by the segment they target: UDAY for distribution finance, household electrification for connections, and the solar and wind missions for generation. Segment mapping resolves the whole family.
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