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

Answer: (d) Providing for financial turnaround and revival of power distribution companies

UDAY (Ujwal DISCOM Assurance Yojana), approved by the Union Cabinet on 5 November 2015, was a rescue-and-reform package for the loss-making State power distribution companies (DISCOMs). Its stated aim was their financial turnaround and revival.

• ✓ (d) States were to take over 75 per cent of DISCOM debt as on 30 September 2015 over two years, cutting the interest burden, while DISCOMs committed to reduce losses and costs.
• ✗ (b) Electrifying villages and households was the task of separate schemes such as the Deendayal Upadhyaya Gram Jyoti Yojana, not UDAY, which dealt with the finances of distribution companies.
• ✗ (c) UDAY did not decide the fuel mix of power generation; it worked at the distribution end of the power sector.

Remember · UDAY (Nov 2015) = Ujwal DISCOM Assurance Yojana: States take over 75% of DISCOM debt; DISCOMs cut losses. Target: financial turnaround of power distribution companies.

Question and answer: UPSC's official GS Paper I (2016, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). · Report an error