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Q7 (IAS/2016) Economy β€Ί Industry, Infrastructure & Investment β€Ί Energy sector infrastructure Official Key

Which one of the following is a purpose of 'UDAY', a scheme of the Government?

Result
Your answer: β€”  Β·  Correct: D
Explanation

The major objectives of the UDAY initiative include financial restructuring of DISCOMs, reduction of Aggregate Technical and Commercial (AT&C) losses, cost reduction in power generation, and improved power supply reliability.[3] Initially, the scheme was targeted for four years until 2019, providing revival package for electricity distribution companies.[5] Ujwal DISCOM Assurance Yojana (UDAY) aims to obtain the operational and financial turnout of state owned power distribution companies.[6] Therefore, the primary purpose of UDAY is the financial turnaround and revival of power distribution companies (DISCOMs), making option D correct. Options A, B, and C are incorrect as they describe objectives of other government schemes but not UDAY. UDAY specifically targets the financial health and operational efficiency of state-owned electricity distribution companies, which were facing severe financial stress and hampering the power sector's overall performance.

Sources
  1. [4] https://www.ibef.org/government-schemes/ujwal-discom-assurance-yojana
  2. [5] https://www.ibef.org/government-schemes/ujwal-discom-assurance-yojana
  3. [6] Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives: Power Sector > p. 23
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PROVENANCE & STUDY PATTERN
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Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. Which one of the following is a purpose of 'UDAY', a scheme of the Government? [A] Providing technical and financial assistance to start…
At a glance
Origin: Books + Current Affairs Fairness: Low / Borderline fairness Books / CA: 2.5/10 Β· 7.5/10
Statement 1
Is providing technical and financial assistance to start-up entrepreneurs in renewable energy a stated purpose of the UDAY (Ujwal DISCOM Assurance Yojana) scheme of the Government of India?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 1/5
"The major objectives of the UDAY initiative include financial restructuring of DISCOMs, reduction of Aggregate Technical and Commercial (AT&C) losses, cost reduction in power generation, and improved power supply reliability."
Why this source?
  • Explicitly lists UDAY's major objectives as financial restructuring of DISCOMs, reduction of AT&C losses, cost reduction in power generation, and improved power supply reliability.
  • Nowhere in this objectives list is provision of technical or financial assistance to start-up renewable-energy entrepreneurs mentioned.
Web source
Presence: 1/5
"the scheme envisages reform measures in the following sectors: generation, transmission, distribution, coal, and energy efficiency. Initially, the scheme was targeted for four years until 2019, providing revival package for electricity distribution companies;"
Why this source?
  • Describes UDAY as envisaging reform measures across generation, transmission, distribution, coal, and energy efficiency, and as a revival package for electricity distribution companies.
  • Focus is on DISCOM reform and revival, not support for start-up entrepreneurs in renewable energy.
Web source
Presence: 1/5
"India’s distribution companies (discoms) are a vital stakeholder group in this transition that may hold the key to the future of the sector."
Why this source?
  • Frames UDAY in the context of transforming the power sector and emphasizes the role of distribution companies (DISCOMs) in the transition.
  • Indicates the scheme targets DISCOM financial and operational performance rather than direct technical/financial assistance to renewable start-ups.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives: Power Sector > p. 23
Strength: 5/5
β€œMangdechhu HEP (720MW) in Bhutan.β€’ About 6379 un-electrified villages have been electrified and 26,284,350 households have been given connections of the electricity as per the 'Saubhagya Yojna' since 2017.β€’ Integrated Power Development Scheme (IPDS) shall ensure a 24Γ—7 for all in the urban areas.β€’ Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY): It shall provide separate feeders and also strengthen the sub-transmission and districution infrastructure at all levels in the rural areas.β€’ Ujwal DISCOM Assurance Yojana (UDAY): To obtain the operational and financial turnout of state owned power distribution companies .β€’ Unnat Jeevan: It was launched in 2015 and is taken by the Energy Efficiency Services Limited .”
Why relevant

Explicit description of UDAY: 'To obtain the operational and financial turnout of state owned power distribution companies' β€” this defines UDAY's core objective as DISCOM turnaround.

How to extend

A student could contrast UDAY's stated DISCOM-focused objective with any claim that it targets start-ups, suggesting the latter is unlikely unless other sources show UDAY has additional provisions.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives > p. 8
Strength: 4/5
β€œThe Ministries of Power, Coal, New & Renewable energy and mines have taken the initiatives to make the mission of 24x7 Affordable Clean 'Power for All' as well as 'Ujwal Bharat' successful . The principles involved are : β€’ (i) Sulabh (Accessible Power)β€’ (ii) Sasti (Cheap Power)β€’ (iii) Swachi (Clean Power)β€’ (iv) Sunyojit (well planned Infrastructure)β€’ (v) Sunishchit (Assured Power for All)”
Why relevant

Ministries of Power, Coal, New & Renewable energy are named as taking initiatives toward '24x7 Affordable Clean Power for All', indicating renewable-energy goals are pursued but at ministry/program level.

How to extend

One could infer renewable-energy entrepreneurship support would more likely be located in ministry/programs for new & renewable energy rather than a DISCOM-finance scheme like UDAY.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 7: Indian Economy after 2014 > Role of government in the promotion of MSME sector: > p. 236
Strength: 4/5
β€œβ€’ ASPIRE: Government has launched A Scheme for Promoting Innovation and Rural Entrepreneurs (ASPIRE) with the objective of setting up a network of technology centres and incubation centres to accelerate entrepreneurship and promote start-ups for innovation and entrepreneurship in rural and agriculture-based industries.β€’ Employment Exchange: Government of India has launched Employment Exchange for Industries to facilitate match making between prospective job seekers and employersβ€’ Government has created a framework for revival and rehabilitation of MSMEsβ€’ Faster access to credit: MSMEs are provided in-principle approval of working capital and term loan worth Rs. 1 lakh to Rs. 1 crore in 59 minutesβ€’ CHAMPIONS: In May, 2020, the GoI launched CHAMPIONS online platform to help and handhold the MSMEs.”
Why relevant

ASPIRE is a government scheme explicitly to promote innovation and start-ups (technology and incubation centres) β€” an example of where start-up technical support is placed.

How to extend

A student could reason that since start-up support has a dedicated scheme (ASPIRE), similar support for renewable-energy start-ups would plausibly be under such schemes, not under UDAY.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > Important Measures Taken So Far > p. 400
Strength: 4/5
β€œ// Important Measures Taken So Far β€’ Start-up Hub to address the queries of various start-ups and assist them. β€’ Mobile app and portal to provide functionalities such as making application for obtaining real-time start-up recognition certificate, SEBI registered funds, notifications issued by various departments, etc. β€’ Scheme for Startup IPR Protection (SIPP) for facilitating fast-tracking filing of patents, trademarks and designs by start-ups. β€’ Relaxed norms in public procurement of the start-ups.”
Why relevant

Listing of Start-up Hub, mobile portal, SIPP, and relaxed procurement norms shows the government provides targeted technical/administrative support for start-ups through specialized programs.

How to extend

Use this pattern to suspect that technical/financial assistance to start-ups is delivered via start-up-specific instruments rather than a DISCOM bailout/operational scheme like UDAY.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 13: Cultural Setting > Government Schemes on SC/ST/OBC > p. 122
Strength: 3/5
β€œCredit Enhancement Guarantee Scheme : The Government in 2014, announced Rs 200 crores to be allocated towards credit enhancement facility for the young SC entrepreneurs. Adivasi Mahila Sashaktikaran Yojana (AMSY): It is an exclusive scheme for the economic development of ST women, at a highly concessional rate of interest. Under it National Scheduled Tribes Finance and Development Corporation (NSTFDC) provides term loan for scheme(s)/project(s) costing upto β‚Ή 50,000/- per individual unit/profit centre. The Tribal Cooperative Marketing Development Federation of India Limited (TRIFED): It was set up in 1987 as a national level apex body under the Multi State Cooperative Societies Act, 1984 (MSCS Act, 1984).”
Why relevant

Examples of targeted credit/guarantee schemes for specific entrepreneur groups (e.g., SC entrepreneurs, ST women) show the Government channels financial assistance through dedicated schemes.

How to extend

A student could extend this pattern to expect renewable-energy start-up finance would similarly be through focused programs, not a broad DISCOM-focused scheme.

Statement 2
Is providing electricity to every household in India by 2018 a stated purpose of the UDAY (Ujwal DISCOM Assurance Yojana) scheme of the Government of India?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"The major objectives of the UDAY initiative include financial restructuring of DISCOMs, reduction of Aggregate Technical and Commercial (AT&C) losses, cost reduction in power generation, and improved power supply reliability."
Why this source?
  • Explicitly lists UDAY's major objectives, which are financial and operational reforms for DISCOMs, not household electrification by a date.
  • No mention in this objective list of 'providing electricity to every household by 2018', indicating that that goal is not a stated purpose here.
Web source
Presence: 4/5
"Initially, the scheme was targeted for four years until 2019, providing revival package for electricity distribution companies;"
Why this source?
  • Describes UDAY as a revival/reform package for electricity distribution companies with an initial four-year target until 2019.
  • Mentions scheme timeframe and DISCOM-focused aims, not an explicit objective to electrify every household by 2018.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives: Power Sector > p. 23
Strength: 5/5
β€œMangdechhu HEP (720MW) in Bhutan.β€’ About 6379 un-electrified villages have been electrified and 26,284,350 households have been given connections of the electricity as per the 'Saubhagya Yojna' since 2017.β€’ Integrated Power Development Scheme (IPDS) shall ensure a 24Γ—7 for all in the urban areas.β€’ Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY): It shall provide separate feeders and also strengthen the sub-transmission and districution infrastructure at all levels in the rural areas.β€’ Ujwal DISCOM Assurance Yojana (UDAY): To obtain the operational and financial turnout of state owned power distribution companies .β€’ Unnat Jeevan: It was launched in 2015 and is taken by the Energy Efficiency Services Limited .”
Why relevant

Explicit description of UDAY in the snippet identifies its purpose as obtaining the operational and financial turnaround of state-owned power distribution companies (DISCOMs).

How to extend

A student could combine this with the specific wording of household-electrification targets in other schemes to infer that household electrification was likely assigned to a different programme, not UDAY.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives > p. 8
Strength: 4/5
β€œThe Ministries of Power, Coal, New & Renewable energy and mines have taken the initiatives to make the mission of 24x7 Affordable Clean 'Power for All' as well as 'Ujwal Bharat' successful . The principles involved are : β€’ (i) Sulabh (Accessible Power)β€’ (ii) Sasti (Cheap Power)β€’ (iii) Swachi (Clean Power)β€’ (iv) Sunyojit (well planned Infrastructure)β€’ (v) Sunishchit (Assured Power for All)”
Why relevant

Describes the national mission '24x7 Affordable Clean Power for All' and principles like 'Assured Power for All', showing a broader government goal of universal access separate from any single scheme.

How to extend

A student could use this to reason that multiple schemes might share the broad goal and then check which scheme names the household-electrification target explicitly.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 15: Infrastructure > Power or Electricity Sector > p. 449
Strength: 5/5
β€œβ€’ Sahaj Bijli Har Ghar Yojana (SAUBHAGYA), 2017 β€’ The aim is to provide electricity connection to more than 40 million families in both rural and urban areas, and making electricity available 24 \times 7. β€’ The beneficiaries of the plan are identified using Socio Economic and Caste Census (SECC) 2011 data. β€’ PRAAPTI App and Web Portal β€’ It aims at bringing transparency in invoicing of generators and power purchase transactions. Under the RES, the largest share in production is of solar energy sector, followed by the wind energy sector.”
Why relevant

Defines the Saubhagya (Sahaj Bijli Har Ghar Yojana) scheme as aiming to provide electricity connections to more than 40 million families (household-connection objective).

How to extend

A student could contrast Saubhagya's explicit household-connection aim with UDAY's DISCOM-focused aim to judge which scheme was intended for household electrification by 2018.

Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 39: After Nehru... > Disbanding Planning Commission and Setting up NITI Aayog > p. 788
Strength: 4/5
β€œits own design. The major positive aspect of the programmes conducted by the NDA government lay in its implementation which was more efficient. As part of the Pradhan Mantri Awas Yojana initiative, the number of rural houses built increased considerably with several beneficiaries getting their due. There was also a large push on rural electrification to ensure all villages had an electricity connection by 2018 under the Deen Dayal Upadhyaya Gram Jyoti Yojana. Under the Ujjwala Yojana, the government aimed to provide LPG connections to below poverty line households in the country to replace polluting cooking fuels used in rural India with the clean and more efficient liquefied petroleum gas.”
Why relevant

States that the government pushed rural electrification to ensure all villages had an electricity connection by 2018 under the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), attributing a 2018 target to a different named scheme.

How to extend

A student could use this to infer that the 2018 village/connection target was associated with DDUGJY (not UDAY), strengthening the hypothesis that UDAY did not state the household-by-2018 goal.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > Introduction: > p. 430
Strength: 4/5
β€œThe industrial consumers are charged higher tariffs to compensate for the loss that the Govt. incurs in providing subsidized power to households and farmers.β€’ Presently the Aggregate Technical and Commercial (AT&C) losses are around 20% to 22% in most of the DISCOMs leading to huge financial burden on DISCOMs. In India, the electricity sector (generation, transmission, distribution, trading) is governed by the Electricity Act 2003. The following are the various reforms/changes which have been suggested in the Electricity Act 2003 through the Electricity Amendment Bill 2021:”
Why relevant

Explains that high AT&C losses place a huge financial burden on DISCOMs, which is the kind of problem UDAY is described as addressing (financial/operational health of DISCOMs).

How to extend

A student could link the technical/financial focus in this snippet to UDAY's stated DISCOM turnaround purpose to argue that UDAY targeted DISCOM finances rather than direct household connection delivery.

Statement 3
Is replacing coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over time a stated purpose of the UDAY (Ujwal DISCOM Assurance Yojana) scheme of the Government of India?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"The major objectives of the UDAY initiative include financial restructuring of DISCOMs, reduction of Aggregate Technical and Commercial (AT&C) losses, cost reduction in power generation, and improved power supply reliability."
Why this source?
  • Lists UDAY's major objectives as financial restructuring of DISCOMs, reducing AT&C losses, lowering generation cost, and improving supply reliability β€” no mention of phasing out coal or replacing coal plants with alternate generation sources.
  • Shows UDAY is focused on distribution-sector reforms and financial/operational improvements, not an explicit fuel-switching or plant-replacement policy.
Web source
Presence: 5/5
"Enhanced domestic coal availability:Ensuring a greater supply of domestically produced coal provides a secure and dependable fuel source for power generation."
Why this source?
  • Describes measures under the scheme that enhance domestic coal availability and optimize coal utilization, which contradicts the idea that UDAY's stated purpose is to replace coal plants over time.
  • Emphasis on coal supply, pricing transparency and improved coal quality indicates support for continued coal-based generation rather than an explicit replacement goal.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives: Power Sector > p. 23
Strength: 5/5
β€œMangdechhu HEP (720MW) in Bhutan.β€’ About 6379 un-electrified villages have been electrified and 26,284,350 households have been given connections of the electricity as per the 'Saubhagya Yojna' since 2017.β€’ Integrated Power Development Scheme (IPDS) shall ensure a 24Γ—7 for all in the urban areas.β€’ Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY): It shall provide separate feeders and also strengthen the sub-transmission and districution infrastructure at all levels in the rural areas.β€’ Ujwal DISCOM Assurance Yojana (UDAY): To obtain the operational and financial turnout of state owned power distribution companies .β€’ Unnat Jeevan: It was launched in 2015 and is taken by the Energy Efficiency Services Limited .”
Why relevant

Explicitly states UDAY's objective: to obtain operational and financial turnaround of state-owned power distribution companies (DISCOMs).

How to extend

A student could infer that UDAY's primary focus is DISCOM performance rather than generation-fuel substitution, so they should check UDAY documents for generation-mix language to confirm or deny the replacement claim.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives > p. 8
Strength: 4/5
β€œThe Ministries of Power, Coal, New & Renewable energy and mines have taken the initiatives to make the mission of 24x7 Affordable Clean 'Power for All' as well as 'Ujwal Bharat' successful . The principles involved are : β€’ (i) Sulabh (Accessible Power)β€’ (ii) Sasti (Cheap Power)β€’ (iii) Swachi (Clean Power)β€’ (iv) Sunyojit (well planned Infrastructure)β€’ (v) Sunishchit (Assured Power for All)”
Why relevant

Lists government-wide principles for '24x7 Affordable Clean Power for All' and 'Ujwal Bharat', emphasizing 'Clean Power' among goals.

How to extend

Combine this with knowledge of national programmes: a student could examine whether UDAY (linked to 'Ujwal Bharat') includes fuel-shift targets as part of its clean-power objectives.

Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 23: India and Climate Change > 23.23. OTHER "CRITICAL INITIATIVES" > p. 319
Strength: 4/5
β€œΒ· In addition, India has 24 other "Critical Initiatives" in the anvil, for which detailed plans and an institutional framework is being prepared β€’ Type: Energy Efficiency in Power Generation; Initiative: Super critical technologies Integrated Gasification Combined Cycle (IGCC) β€’ Type: Technology; Initiative: Natural Gas based Power Plants Closed Cycle Three Stage Nuclear Power Programme Efficient Transmission and Distribution Hydropower β€’ Type: Other Renewable Energy Technologies Programmes; Initiative: RETs for power generation Biomass based popup generation technologies Small scale Hydropower Wind Energy Grid connected systems RETs for 00 00 00 00 All Rights Reserved. No part of this material may be reproduced in any form or by any means, without permission in writing.”
Why relevant

Catalogues other critical initiatives the government is preparing, including natural-gas based plants, nuclear programmes, efficient transmission, and other renewables.

How to extend

A student might use this pattern to reason that fuel diversification is a broader government policy, but must separate those policies from UDAY's stated aims by checking scheme-specific texts.

Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 9: Distribution of World Natural Resources > advantages of thermal Power > p. 22
Strength: 3/5
β€œTe main advantages of thermal energy are as under: β€’ 1. Termal energy can be generated in the areas not suitable for the generation of hydroelectricity.β€’ 2. Coal, diesel and natural gas can be transported to the areas of isolation and relative isolation.β€’ 3. It can be generated when weather conditions are adverse.β€’ 4. Te gestation period of thermal power plant is short. However, thermal energy is not eco-friendly, as it emits enormous quantity of carbon-dioxide. Moreover, it is based on valuable exhaustible resources.Te major thermal power plants in India is given in Table 9.12.”
Why relevant

Notes that thermal (coal, gas, diesel) power is 'not eco-friendly' and based on exhaustible resources, implying policy motivation to reduce reliance on such plants.

How to extend

Use this environmental rationale plus knowledge of national climate/energy goals to suspect programmes promoting non-coal generation exist β€” then verify whether UDAY explicitly includes such generation replacement.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > 1. Consider the following statements: > p. 405
Strength: 3/5
β€œIt is the policy of India to save its own coal reserves for future, and import it from other countries for the present use. β€’ 2. Most of the power plants in India are coal-based and they are not able to get sufficient supplies of coal from within the country. β€’ 3 Which of the statements given above is/are correct? β€’ (b) 2 and 3 only β€’ (a) 1 only β€’ (d) 1, 2 and 3 β€’ (c) 1 and 3 only”
Why relevant

States policy to save domestic coal reserves for the future and describes many power plants in India as coal-based and facing supply issues.

How to extend

A student could combine this policy context with institutional aims of schemes (like UDAY) to assess whether reducing coal use is likely a stated objective of energy-sector reforms or a separate generation policy.

Statement 4
Is providing for financial turnaround and revival of power distribution companies (DISCOMs) a stated purpose of the UDAY (Ujwal DISCOM Assurance Yojana) scheme of the Government of India?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives: Power Sector > p. 23
Presence: 5/5
β€œMangdechhu HEP (720MW) in Bhutan.β€’ About 6379 un-electrified villages have been electrified and 26,284,350 households have been given connections of the electricity as per the 'Saubhagya Yojna' since 2017.β€’ Integrated Power Development Scheme (IPDS) shall ensure a 24Γ—7 for all in the urban areas.β€’ Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY): It shall provide separate feeders and also strengthen the sub-transmission and districution infrastructure at all levels in the rural areas.β€’ Ujwal DISCOM Assurance Yojana (UDAY): To obtain the operational and financial turnout of state owned power distribution companies .β€’ Unnat Jeevan: It was launched in 2015 and is taken by the Energy Efficiency Services Limited .”
Why this source?
  • Snippet explicitly names UDAY and states its purpose as achieving the operational and financial turnaround of state-owned power distribution companies.
  • Direct reference to 'operational and financial' aspect links UDAY to financial revival of DISCOMs.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > Introduction: > p. 430
Presence: 3/5
β€œcapacity. This poor state of State DISCOMs is because of the inability of successive State governments to implement crucial reforms. So, in power sector, the major problem lies with the distribution of electricity. A distribution company's main function is to procure power from the power generators and its distribution to the consumers. In the past Govt. has announced several schemes like UDAY etc. but it has not resulted in any structural reform in the DISCOMs.”
Why this source?
  • Mentions UDAY among government schemes addressing problems in the power sector and DISCOMs.
  • Context indicates UDAY was intended as a reform/relief measure for DISCOMs (even if outcomes are described as limited).
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > Introduction: > p. 429
Presence: 3/5
β€œOver the past few years and specifically in the last two years, India has made impressive progress in overall power generation capacity but the same is not true for the power distribution sector. Now, a paradoxical situation has arisen, on one hand state distribution companies (DISCOMs) lack the means/finances to buy power from power generating units leading to severe power cuts and blackouts on the other hand surplus power is available in the hands of power generators due to which power generators are running at less than full”
Why this source?
  • Describes the financial incapacity of DISCOMs to procure power, establishing the problem UDAY aims to address.
  • Mentions government schemes (including UDAY) in the context of distribution-sector issues, supporting the link between UDAY and DISCOM revival.
Pattern takeaway: UPSC constructs options by borrowing objectives from *other* parallel schemes. To crack this, you don't just need to know what UDAY is; you need to recognize that Option B is actually the definition of DDUGJY/Saubhagya. Elimination works best when you can label the wrong options with their correct schemes.
How you should have studied
  1. [THE VERDICT]: Sitter. Covered in every major newspaper and standard economy text (e.g., Vivek Singh, Majid Husain) as the flagship power reform of 2015.
  2. [THE CONCEPTUAL TRIGGER]: GS3 Infrastructure > Energy Sector > Power Distribution Reforms (The 'weakest link' in the power chain).
  3. [THE HORIZONTAL EXPANSION]: Map the distractors to their actual schemes: Option A = ASPIRE / Start-up India; Option B = DDUGJY (Rural Infrastructure) / 'Power for All' initiative; Option C = National Solar Mission / INDC targets; Option D = UDAY.
  4. [THE STRATEGIC METACOGNITION]: Categorize power schemes by the value chain: Generation (Solar Mission), Transmission (Green Energy Corridor), or Distribution (UDAY, IPDS). Never mix them up. UDAY is purely a financial bailout for the Distribution leg.
Concept hooks from this question
πŸ“Œ Adjacent topic to master
S1
πŸ‘‰ UDAY β€” operational & financial turnaround of state DISCOMs
πŸ’‘ The insight

Reference [1] names UDAY and explicitly assigns it the objective of obtaining the operational and financial turnaround of state-owned power distribution companies.

High-yield for UPSC: questions often ask scheme-specific objectives and differences among power-sector programmes. Knowing UDAY's clear focus on DISCOM restructuring helps distinguish it from other schemes that target startups or renewable energy. Prepare by tabulating scheme names, primary objectives, implementing agencies, and target beneficiaries for quick revision.

πŸ“š Reading List :
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives: Power Sector > p. 23
πŸ”— Anchor: "Is providing technical and financial assistance to start-up entrepreneurs in ren..."
πŸ“Œ Adjacent topic to master
S1
πŸ‘‰ Government start-up & MSME support schemes (ASPIRE, Start-up Hub, CHAMPIONS, SIPP)
πŸ’‘ The insight

References [4] and [8] list multiple government initiatives that explicitly target start-ups, innovation and MSME handholding β€” indicating that start-up assistance is covered under other schemes, not UDAY.

Useful for UPSC to separate sectoral reform schemes from entrepreneurship promotion schemes. Questions may ask which scheme addresses startups versus infrastructure or utility reform. Study by grouping schemes by objective (start-up support vs. power-sector reform) and remembering key flagship programmes and their tools (incubation, IP fast-tracking, portals).

πŸ“š Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 7: Indian Economy after 2014 > Role of government in the promotion of MSME sector: > p. 236
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > Important Measures Taken So Far > p. 400
πŸ”— Anchor: "Is providing technical and financial assistance to start-up entrepreneurs in ren..."
πŸ“Œ Adjacent topic to master
S1
πŸ‘‰ Power-sector programmes & their distinct objectives (Saubhagya, IPDS, DDUGJY, UDAY)
πŸ’‘ The insight

References [1] and [7] list several power-sector initiatives and their specific aims (electrification, 24x7 supply, feeder separation, DISCOM turnaround), underscoring that different programmes target different problems within the power sector.

High utility for UPSC: many questions require distinguishing objectives across multiple power-sector schemes. Master by mapping each programme to its primary problem area (access, distribution strengthening, financial health) and by practicing direct comparison questions.

πŸ“š Reading List :
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives: Power Sector > p. 23
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives > p. 8
πŸ”— Anchor: "Is providing technical and financial assistance to start-up entrepreneurs in ren..."
πŸ“Œ Adjacent topic to master
S2
πŸ‘‰ Differentiate objectives of power-sector schemes (UDAY vs Saubhagya vs DDUGJY)
πŸ’‘ The insight

References attribute distinct goals to different schemes: UDAY for DISCOM turnaround, Saubhagya and DDUGJY for household/village electrification.

UPSC often asks to match schemes with their primary objectives; mastering which scheme targets infrastructure/financial reform versus last-mile electrification helps answer polity/economy questions and mains answer framing. Prepare by tabulating scheme names, launch years, and one-line objectives for quick recall.

πŸ“š Reading List :
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives: Power Sector > p. 23
  • Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 39: After Nehru... > Disbanding Planning Commission and Setting up NITI Aayog > p. 788
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 15: Infrastructure > Power or Electricity Sector > p. 449
πŸ”— Anchor: "Is providing electricity to every household in India by 2018 a stated purpose of..."
πŸ“Œ Adjacent topic to master
S2
πŸ‘‰ UDAY: DISCOM financial and operational turnaround
πŸ’‘ The insight

Reference explicitly states UDAY's purpose is to obtain operational and financial turnaround of state power distribution companies.

Knowing UDAY's core aim prevents misattribution (e.g., household electrification) in MCQs and mains answers about power sector reforms; connects to topics on fiscal health of state PSUs and power-sector reforms. Learn by linking scheme names to policy problems they address (financial distress, losses, AT&C reduction).

πŸ“š Reading List :
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives: Power Sector > p. 23
πŸ”— Anchor: "Is providing electricity to every household in India by 2018 a stated purpose of..."
πŸ“Œ Adjacent topic to master
S2
πŸ‘‰ Saubhagya and DDUGJY: household and village electrification targets
πŸ’‘ The insight

References show Saubhagya aims to provide household connections and DDUGJY targets village electrification and rural distribution strengthening.

Frequently tested theme: rural electrification programmes and timelines (e.g., 'connections by 2018/2017'); mastering these schemes aids in questions on rural development, infrastructure, and scheme outcomes. Use comparative flashcards and timelines to remember scope and target groups.

πŸ“š Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 15: Infrastructure > Power or Electricity Sector > p. 449
  • Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 39: After Nehru... > Disbanding Planning Commission and Setting up NITI Aayog > p. 788
πŸ”— Anchor: "Is providing electricity to every household in India by 2018 a stated purpose of..."
πŸ“Œ Adjacent topic to master
S3
πŸ‘‰ UDAY's stated objective: DISCOM operational & financial turnaround
πŸ’‘ The insight

UDAY is explicitly described in the references as aimed at improving the operational and financial health of state-owned power distribution companies (DISCOMs).

High-yield for UPSC: understanding scheme objectives is frequently tested in prelims and mains (scheme-centric questions, governance and public utility reform). It connects to topics on power sector reform, fiscal state liabilities, and delivery of public services. Prepare by memorising scheme objectives, measurable targets, and how they relate to broader sectoral reforms.

πŸ“š Reading List :
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives: Power Sector > p. 23
πŸ”— Anchor: "Is replacing coal-based power plants with natural gas, nuclear, solar, wind and ..."
πŸŒ‘ The Hidden Trap

The successor to UDAY is the 'Revamped Distribution Sector Scheme' (RDSS). Unlike UDAY, which was a debt takeover, RDSS is results-linked financial assistance focusing on prepaid smart metering and infrastructure upgrades. Watch out for 'Smart Metering' in future prelims.

⚑ Elimination Cheat Code

The 'Acronym Hack': UDAY stands for 'Ujwal DISCOM Assurance Yojana'. The word 'DISCOM' appears only in Option D ('power distribution companies'). Options A, B, and C talk about generation or households. The name literally contains the answer.

πŸ”— Mains Connection

Mains GS3 (Fiscal Federalism): UDAY required States to take over 75% of DISCOM debt, which spiked State Fiscal Deficits in 2015-17. This links Energy Security directly to State Finances and FRBM limits.

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SIMILAR QUESTIONS

CDS-I Β· 2020 Β· Q39 Relevance score: -1.25

Which one of the following is the earliest launched scheme of the Government of India?

CDS-I Β· 2020 Β· Q25 Relevance score: -2.57

Saubhagya, a Government of India Scheme, relates to which of the following areas?

CAPF Β· 2020 Β· Q85 Relevance score: -2.58

SAUBHAGYA, a Central Government scheme, is related to