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Ujwal Discom Assurance Yojana
Consider the following statements with reference to the Ujwal Discom Assurance Yojana (UDAY) scheme:
- Launched in 2015, under the scheme the state governments were to take over 75 percent of the utilities debts and include it in their fiscal deficit calculations.
- UDAY also requires discoms to maintain commercial sustainability, and bring down the gap between average cost of supply (ACS) and average revenue realized (ARR) to zero.
Choose the correct answer from the codes given below:
A |
Only 1
|
|
B |
Only 2
|
|
C |
Both 1 and 2
|
|
D |
Neither 1 nor 2
|
Your Ans is
Right ans is C
Your Answer Is Correct
Your Answer Is Wrong
Explanation :
- Ujwal Discom Assurance Yojna was launched in November 2015 to help loss-making discoms turn around financially, with support from their State governments.
- The scheme, optional for the states to join, envisaged state governments to take over 75 percent of the utilities debts and include it in their fiscal deficit calculations.
- It also requires distribution companies (discoms) to maintain commercial sustainability, and bring down the gap between average cost of supply (ACS) and average revenue realized (ARR) to zero.
- UDAY envisages to have a permanent solution for past as well as potential future issues of power sector such as reducing interest burden on discoms by allowing states to take over the bulk of their debt, reduce the cost of power, increase operational efficiencies of discoms by providing capital and infrastructure like coal linkages and reduce in AT&C and transmission losses.
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