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Question 7

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

AOptions

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

BSolution

UDAY stands for Ujwal DISCOM Assurance Yojana. It was launched by the Government of India in November 2015 with the primary objective of addressing the financial distress of state-owned electricity distribution companies (DISCOMs). DISCOMs in India had accumulated significant debts and losses, which hindered their ability to supply reliable power. UDAY aimed to enable DISCOMs to regain financial health and operational efficiency through debt restructuring, reduction of interest costs, and improvement of operational efficiencies.

CStrategy

For government schemes, it is crucial to remember the full form (if applicable) and the core objective or problem that the scheme aims to address. Focus on the 'why' behind the scheme's launch and its primary beneficiaries or targets.

DSyllabus Analysis

This question falls under the Indian Economy section, specifically government schemes and initiatives in the energy sector, and also relates to current affairs.

EQuestion Analysis

Easy. UDAY was a significant government scheme aimed at power sector reforms and was widely covered in news and policy discussions.