Question map
Which one of the following is a purpose of 'UDAY', a scheme of the Government?
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- [4] https://www.ibef.org/government-schemes/ujwal-discom-assurance-yojana
- [5] https://www.ibef.org/government-schemes/ujwal-discom-assurance-yojana
- [6] Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives: Power Sector > p. 23
PROVENANCE & STUDY PATTERN
Guest previewThis is a classic 'Acronym-Decoder' question. The scheme was a headline reform in 2015-16. If you knew the full form (Ujwal DISCOM Assurance Yojana), the answer was explicitly in the name. It proves that for government schemes, the 'What' (Objective) and 'Who' (Beneficiary) are more important than the technical details.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- 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?
- 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?
- 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?
- 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?
- 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.
- 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.
- 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.
Explicit description of UDAY: 'To obtain the operational and financial turnout of state owned power distribution companies' â this defines UDAY's core objective as DISCOM turnaround.
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.
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.
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.
ASPIRE is a government scheme explicitly to promote innovation and start-ups (technology and incubation centres) â an example of where start-up technical support is placed.
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.
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.
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.
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.
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.
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