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
Full viewThis 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' β 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) β 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.
- 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.
- 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.
Explicit description of UDAY in the snippet identifies its purpose as obtaining the operational and financial turnaround of state-owned power distribution companies (DISCOMs).
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.
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.
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.
Defines the Saubhagya (Sahaj Bijli Har Ghar Yojana) scheme as aiming to provide electricity connections to more than 40 million families (household-connection objective).
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.
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.
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.
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).
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.
- 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.
- 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.
Explicitly states UDAY's objective: to obtain operational and financial turnaround of state-owned power distribution companies (DISCOMs).
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.
Lists government-wide principles for '24x7 Affordable Clean Power for All' and 'Ujwal Bharat', emphasizing 'Clean Power' among goals.
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.
Catalogues other critical initiatives the government is preparing, including natural-gas based plants, nuclear programmes, efficient transmission, and other renewables.
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.
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.
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.
States policy to save domestic coal reserves for the future and describes many power plants in India as coal-based and facing supply issues.
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.
- 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.
- 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).
- 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.
- [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.
- [THE CONCEPTUAL TRIGGER]: GS3 Infrastructure > Energy Sector > Power Distribution Reforms (The 'weakest link' in the power chain).
- [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.
- [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.
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.
- Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives: Power Sector > p. 23
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).
- 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
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.
- 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
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.
- 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
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).
- Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives: Power Sector > p. 23
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.
- 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
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.
- Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives: Power Sector > p. 23
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.
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.
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.