Ujwal Discom Assurance Yojana (UDAY)

What is it?

• UDAY aims for the financial turnaround and revival of Power Distribution companies (DISCOMs).
• States accepting and performing under UDAY will be given priority funding through DDUGJY, IPDS and Power System Development Fund.

This is achieved through four initiatives:

• Improving operational efficiencies of DISCOMs: Compulsory smart metering, upgradation of transformers, meters etc.
• Reduction of the cost of power generation: Increased supply of cheaper domestic coal, coal linkage rationalization etc.
• Reduction in interest cost of DISCOMs: States shall take over 75% of DISCOM debt as on 30 September 2015 over two years.
• Enforcing financial discipline  on DISCOMs through alignment with State

About Integrated Power Development (IPDS) scheme:

• IPDS aims for improvement of Transmission & Distribution networks, reduction of AT&C losses, establishment of IT enabled accounting and improvement in collection efficiency.

Objectives of IPDS are:

• Strengthening of sub-transmission and distribution network in the urban areas.
• Metering of distribution transformers/feeders/consumers in the urban areas.
• IT enablement of distribution sector and strengthening of distribution network.

PRELIMS QUESTION

Consider the following statements regarding Ujwal Discom Assurance Yojana: 
1.It  aims at Improving operational efficiencies of Distribution Companies.
2.It aims to enforce financial discipline on Distribution Companies
Which of the statements given above is/are correct?
(a)1 only
(b)2 only
(c)Both 1 and 2 
(d)Neither 1 nor 2

Answer to Prelims Question