Which one of the following is a purpose of ‘UDAY’, a scheme of the Government?
- 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 countries 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
Answer: D
Explanation
The Union Cabinet had given its approval to a new scheme moved by the Ministry of Power – Ujwal DISCOM Assurance Yojna or UDAY. UDAY provides for the financial turnaround and revival of Power Distribution companies (DISCOMs), and importantly also ensures a sustainable permanent solution to the problem. Under UDAY, state governments will take over 75 per cent of the debt held by their discoms as of September 30, 2015. Half the debt will be taken over in 2015-16 and 25 per cent in 2016-17. The balance 25 per cent of the debt is to be serviced through state government-guaranteed bonds issued by the discoms.