{"id":229676,"date":"2025-09-29T17:49:28","date_gmt":"2025-09-29T12:19:28","guid":{"rendered":"https:\/\/www.oliveboard.in\/blog\/?p=229676"},"modified":"2025-09-29T18:14:06","modified_gmt":"2025-09-29T12:44:06","slug":"uday-scheme","status":"publish","type":"post","link":"https:\/\/www.oliveboard.in\/blog\/uday-scheme\/","title":{"rendered":"UDAY Scheme, Transforming India\u2019s Power Distribution Sector"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_77 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of content<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.oliveboard.in\/blog\/uday-scheme\/#What_is_UDAY_20\" >What is UDAY 2.0?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.oliveboard.in\/blog\/uday-scheme\/#Why_was_the_UDAY_Scheme_Needed\" >Why was the UDAY Scheme Needed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.oliveboard.in\/blog\/uday-scheme\/#What_are_the_Objectives_of_the_UDAY_Scheme\" >What are the Objectives of the UDAY Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.oliveboard.in\/blog\/uday-scheme\/#What_are_the_Key_Features_of_the_UDAY_Scheme\" >What are the Key Features of the UDAY Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.oliveboard.in\/blog\/uday-scheme\/#Who_can_Participate_in_the_UDAY_Scheme\" >Who can Participate in the UDAY Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.oliveboard.in\/blog\/uday-scheme\/#What_are_the_Benefits_of_the_UDAY_Scheme\" >What are the Benefits of the UDAY Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.oliveboard.in\/blog\/uday-scheme\/#What_is_the_Impact_of_the_UDAY_Scheme\" >What is the Impact of the UDAY Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.oliveboard.in\/blog\/uday-scheme\/#What_challenges_has_the_UDAY_Scheme_Faced\" >What challenges has the UDAY Scheme Faced?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.oliveboard.in\/blog\/uday-scheme\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.oliveboard.in\/blog\/uday-scheme\/#Questions_on_UDAY_Scheme\" >Questions on UDAY Scheme<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>The UDAY Scheme, or Ujwal DISCOM Assurance Yojana, was launched by the Government of India on 5th November 2015, under the Ministry of Power. The primary objective of this scheme is the operational and financial turnaround of state-owned power distribution companies (DISCOMs).<\/p>\n\n\n\n<p>DISCOMs are responsible for purchasing electricity from generation companies and distributing it to consumers. Financially weak DISCOMs have historically affected electricity supply reliability, affordability, and overall economic development. The UDAY Scheme was designed to reduce their debt burden, enhance operational efficiency, and ensure 24\u00d77 power availability to all consumers.<\/p>\n\n\n\n<p>The scheme also aims at improving revenue-side efficiency and cost-side efficiency, thereby making DISCOMs financially viable and sustainable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-uday-2-0\"><span class=\"ez-toc-section\" id=\"What_is_UDAY_20\"><\/span>What is UDAY 2.0?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Launched in 2021, UDAY 2.0 aims to further modernize power distribution through:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Installation of smart prepaid meters.<\/li>\n\n\n\n<li>Prompt payment mechanisms by DISCOMs.<\/li>\n\n\n\n<li>Ensuring coal availability for short-term power generation.<\/li>\n\n\n\n<li>Reviving gas-based plants for better electricity supply.<\/li>\n<\/ul>\n\n\n\n<p>UDAY 2.0 builds upon the original scheme with reform-based, result-linked strategies, ensuring long-term sustainability of power distribution companies.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.oliveboard.in\/upcoming-government-exams\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">Check Upcoming Govt Exams<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-was-the-uday-scheme-needed\"><span class=\"ez-toc-section\" id=\"Why_was_the_UDAY_Scheme_Needed\"><\/span>Why was the UDAY Scheme Needed?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>India\u2019s DISCOMs were facing huge financial losses due to several factors:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>High Aggregate Technical &amp; Commercial (AT&amp;C) losses, caused by transmission inefficiencies and theft.<\/li>\n\n\n\n<li>Supplying power at subsidized rates below cost, leading to revenue gaps.<\/li>\n\n\n\n<li>Accumulation of debt from banks and financial institutions to meet operational costs.<\/li>\n\n\n\n<li>Poor billing efficiency and revenue collection, further aggravating losses.<\/li>\n<\/ul>\n\n\n\n<p>These issues created a vicious cycle of debt, low infrastructure investment, and poor service quality. UDAY was initiated to break this cycle, improve operational efficiency, and reduce the debt burden on DISCOMs and state governments.<\/p>\n\n\n\n<p><strong>Check Out: <\/strong><a href=\"https:\/\/www.oliveboard.in\/blog\/important-government-schemes-nabard-grade-a\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">Complete List of Important Schemes for NABARD Grade A Exam<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-objectives-of-the-uday-scheme\"><span class=\"ez-toc-section\" id=\"What_are_the_Objectives_of_the_UDAY_Scheme\"><\/span>What are the Objectives of the UDAY Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The UDAY Scheme focuses on multiple objectives:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Financial Turnaround of DISCOMs:<\/strong> Reduce debt burden by taking over 75% of DISCOM debts by state governments.<\/li>\n\n\n\n<li><strong>Operational Efficiency:<\/strong> Mandate smart metering, transformer and meter upgrades, and energy-efficient measures.<\/li>\n\n\n\n<li><strong>Reduce AT&amp;C Losses:<\/strong> Target reduction from 22% to 15% by 2018-19.<\/li>\n\n\n\n<li><strong>Close ACS-ARR Gap:<\/strong> Ensure that the <strong>average cost of supply (ACS)<\/strong> and <strong>average revenue realized (ARR)<\/strong> gap is minimized.<\/li>\n\n\n\n<li><strong>Affordable and Reliable Power Supply:<\/strong> Ensure 24\u00d77 electricity for all consumers.<\/li>\n\n\n\n<li><strong>Promotion of Renewable Energy:<\/strong> Encourage adoption of energy-efficient technologies and renewable power.<\/li>\n\n\n\n<li><strong>State Participation Incentives:<\/strong> Offer incentives to states performing well in meeting operational milestones.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-key-features-of-the-uday-scheme\"><span class=\"ez-toc-section\" id=\"What_are_the_Key_Features_of_the_UDAY_Scheme\"><\/span>What are the Key Features of the UDAY Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The key features of the UDAY Scheme are as follows:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Voluntary Scheme:<\/strong> States can opt-in by signing an <strong>MoU<\/strong> with the Union Government.<\/li>\n\n\n\n<li><strong>Debt Restructuring:<\/strong> State governments absorb 75% of DISCOM debt; remaining 25% managed through DISCOM bonds.<\/li>\n\n\n\n<li><strong>Operational Milestones:<\/strong> Performance-based incentives are provided to states.<\/li>\n\n\n\n<li><strong>Energy Efficiency Measures:<\/strong> Promotion of LED bulbs, energy-efficient agricultural pumps, fans, and ACs.<\/li>\n\n\n\n<li><strong>Improved Infrastructure:<\/strong> Upgradation of transformers, meters, and installation of smart meters.<\/li>\n\n\n\n<li><strong>Priority Funding:<\/strong> Participating states receive priority for central assistance under various programs.<\/li>\n<\/ol>\n\n\n\n<p><strong>Get ready to crack government job exams with leading educators<\/strong><\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.oliveboard.in\/courses\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">Enroll in Online Live Classes Today!<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-who-can-participate-in-the-uday-scheme\"><span class=\"ez-toc-section\" id=\"Who_can_Participate_in_the_UDAY_Scheme\"><\/span>Who can Participate in the UDAY Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>All state-owned DISCOMs and their respective state governments can choose to join the UDAY scheme on a voluntary basis. <\/p>\n\n\n\n<p>Jharkhand was the first state to participate in the scheme. However, private sector DISCOMs are not included under the UDAY program and cannot take part in it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-benefits-of-the-uday-scheme\"><span class=\"ez-toc-section\" id=\"What_are_the_Benefits_of_the_UDAY_Scheme\"><\/span>What are the Benefits of the UDAY Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The benefits of the UDAY Scheme are as follows:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Category<\/strong><\/td><td><strong>Details<\/strong><\/td><\/tr><tr><td>For States and DISCOMs<\/td><td><strong>Financial Relief:<\/strong> Reduced debt burden and interest costs<br><strong>Operational Efficiency:<\/strong> Better infrastructure and energy management<br><strong>Increased Revenue:<\/strong> Improved billing efficiency and collection<br><strong>Affordable Power Supply:<\/strong> Lower electricity costs for consumers<\/td><\/tr><tr><td>For the Power Sector<\/td><td><strong>Enhanced Capital Investment:<\/strong> Funds freed up for infrastructure development<br><strong>Renewable Energy Promotion:<\/strong> Supports energy-efficient solutions<br><strong>Transparent Power Purchase:<\/strong> Encourages competitive bidding and better fuel management<\/td><\/tr><tr><td>Coal and Transmission Benefits<\/td><td><strong>Coal Linkage Rationalization:<\/strong> Rationalization of coal linkages and prices<br><strong>Additional Coal Supply:<\/strong> Coal provided at notified prices<br><strong>Transmission Lines:<\/strong> Faster completion of interstate transmission lines<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-the-impact-of-the-uday-scheme\"><span class=\"ez-toc-section\" id=\"What_is_the_Impact_of_the_UDAY_Scheme\"><\/span>What is the Impact of the UDAY Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The details of the impact of the UDAY Scheme are as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Financially Sound DISCOMs:<\/strong> Reduction in stressed assets and better financial health.<\/li>\n\n\n\n<li><strong>Improved Power Supply:<\/strong> Reliability and affordability of electricity.<\/li>\n\n\n\n<li><strong>Renewable Energy Growth:<\/strong> Increased investment in clean energy solutions.<\/li>\n\n\n\n<li><strong>Capital Investment:<\/strong> Cheaper funds allow infrastructure modernization.<\/li>\n\n\n\n<li><strong>Operational Improvement:<\/strong> Reduced AT&amp;C losses and better PLF of generating plants.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.oliveboard.in\/test-series\/?ref=contac-ai\" target=\"_blank\" rel=\"noreferrer noopener\">Attempt a free mock test Now!<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-challenges-has-the-uday-scheme-faced\"><span class=\"ez-toc-section\" id=\"What_challenges_has_the_UDAY_Scheme_Faced\"><\/span>What challenges has the UDAY Scheme Faced?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The challenges that were being faced by the UDAY scheme are as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Cross-Subsidy and Power Procurement Costs:<\/strong> Not fully addressed.<\/li>\n\n\n\n<li><strong>Geographical and Demographic Constraints:<\/strong> Large rural or hilly states face difficulties.<\/li>\n\n\n\n<li><strong>State and DISCOM Capacity:<\/strong> Limited financial and operational capacities.<\/li>\n\n\n\n<li><strong>Persistent AT&amp;C Losses:<\/strong> Some states still have high losses, e.g., Arunachal Pradesh (56%).<\/li>\n\n\n\n<li><strong>Billing Inefficiencies:<\/strong> Poor billing and collection practices remain a challenge.<\/li>\n<\/ul>\n\n\n\n<p>Despite these challenges, UDAY has helped reduce debts and initiated reforms in the distribution sector. However, the ACS-ARR gap and AT&amp;C losses still need continuous monitoring and improvement.<\/p>\n\n\n\n<p><strong>Also Check: <a href=\"https:\/\/www.oliveboard.in\/blog\/government-schemes\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">List of Government Schemes of India<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-key-takeaways\"><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Aspect<\/strong><\/td><td><strong>Key Points<\/strong><\/td><\/tr><tr><td>Full Form<\/td><td>Ujwal DISCOM Assurance Yojana<\/td><\/tr><tr><td>Launch Date<\/td><td>5th November 2015<\/td><\/tr><tr><td>Ministry<\/td><td>Ministry of Power, GOI<\/td><\/tr><tr><td>Aim<\/td><td>Financial and operational turnaround of DISCOMs<\/td><\/tr><tr><td>Participation<\/td><td>Voluntary for state governments<\/td><\/tr><tr><td>Debt Takeover<\/td><td>75% by states, 25% through DISCOM bonds<\/td><\/tr><tr><td>AT&amp;C Loss Reduction<\/td><td>Target from 22% to 15%<\/td><\/tr><tr><td>ACS-ARR Gap<\/td><td>Minimized through operational reforms<\/td><\/tr><tr><td>Incentives<\/td><td>Priority funding, coal linkages, fiscal benefits<\/td><\/tr><tr><td>Challenges<\/td><td>Cross-subsidy, billing inefficiency, geographical constraints<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.oliveboard.in\/previous-year-papers\/?ref=contac-ai\" target=\"_blank\" rel=\"noreferrer noopener\">Solve Free Previous Year Papers Today<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-questions-on-uday-scheme\"><span class=\"ez-toc-section\" id=\"Questions_on_UDAY_Scheme\"><\/span>Questions on UDAY Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Q1.<\/strong> What is the full form of UDAY?<br>A. Universal Distribution Assurance Yojana<br>B. Ujwal DISCOM Assurance Yojana <br>C. Unified DISCOM Annual Yojana<br>D. Utility Development Assistance Yojana<br>E. None of the above<\/p>\n\n\n\n<p><strong>Q2.<\/strong> When was UDAY Scheme launched?<br>A. November 2014<br>B. November 2015<br>C. January 2016<br>D. December 2015<br>E. June 2015<\/p>\n\n\n\n<p><strong>Q3.<\/strong> Which ministry launched UDAY Scheme?<br>A. Ministry of Finance<br>B. Ministry of Energy<br>C. Ministry of Power<br>D. Ministry of Renewable Energy<br>E. Ministry of Home Affairs<\/p>\n\n\n\n<p><strong>Q4.<\/strong> What percentage of DISCOM debt is taken over by states under UDAY?<br>A. 50%<br>B. 60%<br>C. 75%<br>D. 25%<br>E. 100%<\/p>\n\n\n\n<p><strong>Q5.<\/strong> What is the target AT&amp;C loss under UDAY?<br>A. 25%<br>B. 22%<br>C. 15%<br>D. 18%<br>E. 12%<\/p>\n\n\n\n<p><strong>Also Read:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Government Schemes<\/strong><\/td><td><strong>Government Schemes<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/www.oliveboard.in\/blog\/one-nation-one-subscription-onos\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">One Nation One Subscription<\/a><\/td><td><a href=\"https:\/\/www.oliveboard.in\/blog\/ayushman-bharat-scheme\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">Ayushman Bharat Scheme<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/www.oliveboard.in\/blog\/aatmanirbharta-in-pulses\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">Aatmanirbharta in Pulses<\/a><\/td><td><a href=\"https:\/\/www.oliveboard.in\/blog\/national-broadband-mission-2-0\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">National Broadband Mission 2.0<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/www.oliveboard.in\/blog\/pm-dhan-dhaanya-krishi-yojana-pmddky\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">Pradhan Mantri Dhan Krishi Yojana<\/a><\/td><td><a href=\"https:\/\/www.oliveboard.in\/blog\/stand-up-india-scheme\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">Stand Up India Scheme<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/www.oliveboard.in\/blog\/gst-2-0\/?ref=contc-aib\" target=\"_blank\" rel=\"noreferrer noopener\">All About GST 2.0<\/a><\/td><td><a href=\"https:\/\/www.oliveboard.in\/blog\/green-credit-program-earn-rewards-for-a-greener-world\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">National Green Credit Programme<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Q6.<\/strong> Which was the first state to join UDAY?<br>A. Rajasthan<br>B. Jharkhand<br>C. Gujarat<br>D. Kerala<br>E. Maharashtra<\/p>\n\n\n\n<p><strong>Q7.<\/strong> What is UDAY 2.0 focused on?<br>A. Only debt takeover<br>B. Smart prepaid meters, prompt payment, coal availability<br>C. Increasing coal prices<br>D. Privatization of DISCOMs<br>E. Renewable energy only<\/p>\n\n\n\n<p><strong>Q8.<\/strong> What type of bonds are issued under UDAY?<br>A. State Development Loans (SDL) and Non-SLR Bonds<br>B. Corporate Bonds<br>C. Foreign Bonds<br>D. Convertible Bonds<br>E. Municipal Bonds<\/p>\n\n\n\n<p><strong>Q9.<\/strong> Which of the following is NOT an objective of UDAY?<br>A. Reduce AT&amp;C losses<br>B. Close ACS-ARR gap<br>C. Privatize DISCOMs<br>D. Improve operational efficiency<br>E. Promote renewable energy<\/p>\n\n\n\n<p><strong>Q10.<\/strong> What is the major challenge faced by UDAY Scheme?<br>A. Lack of electricity supply<br>B. Cross-subsidy and billing inefficiency<br>C. Coal shortage<br>D. Over-production of electricity<br>E. Excessive investment<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-answer-key\">Answer Key<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Question No.<\/strong><\/td><td><strong>Correct Option<\/strong><\/td><td><strong>Question No.<\/strong><\/td><td><strong>Correct Option<\/strong><\/td><\/tr><tr><td>Q1<\/td><td>B<\/td><td>6<\/td><td>B<\/td><\/tr><tr><td>Q2<\/td><td>B<\/td><td>7<\/td><td>B<\/td><\/tr><tr><td>Q3<\/td><td>C<\/td><td>8<\/td><td>A<\/td><\/tr><tr><td>Q4<\/td><td>C<\/td><td>9<\/td><td>C<\/td><\/tr><tr><td>Q5<\/td><td>C<\/td><td>10<\/td><td>B<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n<ul class=\"wp-block-latest-posts__list is-grid columns-3 wp-block-latest-posts\"><li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/how-to-clear-multiple-government-exams\/\">How Some Aspirants Clear Multiple Government Exams: Strategy, Discipline &amp; Exam Psychology<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/crop-diversification-program\/\">Crop Diversification Program, Transforming Indian Agriculture<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/important-government-schemes-nabard-grade-a\/\">Government Schemes for NABARD Grade A 2026<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/national-dairy-plan-phase-1-phase-2\/\">National Dairy Plan Phase 1 and Phase 2, Boosting India\u2019s Dairy Sector<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/mera-gaon-mera-gaurav-scheme\/\">Mera Gaon Mera Gaurav Scheme, Bridging Lab to Land<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/farmers-first-initiative\/\">Farmers First Initiative, Empowering Farmers Through Innovation<\/a><\/li>\n<\/ul>","protected":false},"excerpt":{"rendered":"<p>The UDAY Scheme, or Ujwal DISCOM Assurance Yojana, was launched by the Government of India on 5th November 2015, under<\/p>\n","protected":false},"author":58,"featured_media":229677,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14458,11544],"tags":[],"class_list":["post-229676","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government-scheme","category-static-gk","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>UDAY Scheme, Transforming India\u2019s Power Distribution Sector<\/title>\n<meta name=\"description\" content=\"Check out the details of UDAY Scheme and its impact on India&#039;s power sector, focusing on objectives, features, and benefits for consumers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.oliveboard.in\/blog\/uday-scheme\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UDAY Scheme, Transforming India\u2019s Power Distribution Sector\" \/>\n<meta property=\"og:description\" content=\"The UDAY Scheme, or Ujwal DISCOM Assurance Yojana, was launched by the Government of India on 5th November 2015, under the Ministry of Power. 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