1. Home
  2. |  
  3. Civil Services |  

IAS Prelims Exam: Economic Survey 2015-16 Questions: Powering “One India”

Apr 26, 2016 17:31 IST

    To study Economic Survey is very important because UPSC in its IAS Prelims Exam used to ask various terms which are associated with the issues of Indian Economy. As per the recent trend, the subject Economy has important place in General Studies Paper I of IAS Prelims Exam in which around 15 to 25 questions used to ask every year. So, the aspirants need to study very hard to cover all the topics of GS Paper I of IAS Prelims Exam. Here, we have developed Multiple Choice Questions on one of the chapters of Economic Survey 2015-16 i.e. - Powering “One India”

    1. Consider the following statements regarding the Ujwal DISCOM Assurance Yojana (UDAY):

    I. The motive of UDAY is to improve the health and performance of the distribution companies.
    II. The motive of UDAY is to improve the health and performance of the Public Sector Banks of the country.
    III. One of the salient features of the scheme is to increase supply of domestic coal to substitute for imported coal.

    Which of the following statement(s) is/are correct?

    a. Only I
    b. I and II
    c. I and III
    d. All of the above

    Answer: c

    Explanation: The motive of UDAY is to improve the health and performance of the power distribution companies. The salient features of the schemes are:

    • States shall take over 75 per cent of discom debt outstanding as of September 2015.
    • Reduction of Aggregate Technical & Commercial (AT&C) losses to 15 per cent by 2018-19.
    • Reduction in difference between average cost of supply and average revenue realized (ARR) by   2018-19.
    • Increased supply of domestic coal to substitute for imported coal.
    • States shall take over future losses of discoms in a phased manner.
    • Banks/FIs not to advance short term debt to discoms for financing losses.

    2. Consider the following statements regarding the salient features of the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY):

    I. Electrification of all villages.
    II. Metering of unmetered connections for reducing losses.
    III. Separation of feeders to ensure sufficient electricity to agriculture and continuous supply to other categories.

    Which of the following statement(s) is/are correct?

    a. Only I
    b. I and II
    c. II and III
    d. All of the above

    Answer: d

    Explanation: Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) was launched by Prime Minister Narendra Modi in Patna, Bihar. The aim of this flagship scheme is to provide 24×7 uninterrupted electricity supply to each rural household across the country by 2022. DDUGJY has replaced Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), which was launched by previous UPA government led by then PM Manmohan Singh.

    3. Consider the following statements regarding the salient features of the Integrated Power Development Scheme (IPDS):

    I. Strengthening of sub-transmission and distribution network in urban areas.
    II. Metering of distribution transformers/feeders/consumers in rural areas.
    III. IT enablement of distribution sector and strengthening of distribution network.

    Which of the following statement(s) is/are correct?

    a. Only I
    b. I and II
    c. I and III
    d. All of the above

    Answer: c

    Explanation: Integrated Power Development Scheme (IPDS) was launched by Prime Minister Narendra Modi. Integrated Power Development Scheme has replaced the UPA’s Restructured Accelerated Power Development Programme. The major focus of the scheme is to improve the transmission and distribution network in urban areas of the country. It also promises help in reduction of AT&C losses, establishment of IT enabled energy accounting or auditing system, improvement in billed energy based on metered consumption and improvement in collection efficiency.

    4. Which of the following statements is incorrect regarding the National Tariff Policy, 2016?

    a. The Central Government of India has amended the National Tariff Policy for Electricity on 20 January, 2016.
    b. The amended National Tariff Policy (NTP) 2016 focussed on renewable energy and sourcing of power through competitive bidding.
    c. The amendments also aimed at achieving the objectives of UDAY scheme.
    d. The amendments also aimed at achieving the objectives of Digital India scheme.

    Answer: d

    Explanation: The Central Government of India has amended the National Tariff Policy for Electricity on 20 January, 2016. The amended National Tariff Policy (NTP) 2016 focussed on renewable energy and sourcing of power through competitive bidding. The amendments also aimed at achieving the objectives of UDAY scheme. Power tariff policy, governed under the Electricity Act, guides in setting power rates, signing of power purchase agreements, sale and purchase of coal and power (both conventional and renewable energy).

    5. Which of the following statements is correct regarding the Domestic Efficient Lighting Program (DELP)?

    a. The programme aims in strengthening of sub-transmission and distribution network in urban areas.
    b. The programme has been launched to replace the regular bulbs and CFL lights with LED lights.
    c. The aim of the programme is to increase supply of domestic coal to substitute for imported coal.
    d. The programme has been launched to metering of unmetered connections for reducing losses.

    Answer: b

    Explanation: Domestic Efficient Lighting Program (DELP) has been launched in several states like in Maharashtra, Rajasthan, Himachal Pradesh, Uttar Pradesh, Delhi to replace the regular bulbs and CFL lights with LED lights. The programme is being implemented by Discoms in association with Energy Efficiency Services Limited (EESL). LED lights will be provided at lower than market price under this scheme.

    6. Consider the following statements regarding the key role of discoms in the power sector in India:

    I. Discoms are acting as an interface between retail consumers and rest of the value chain.
    II. Discoms act as intermediaries between generators and retail consumers, purchasing electricity from   wholesale markets and marketing it to retail consumers.
    III. Discoms recover returns on their equity investments (ROI) by charging a mark-up over their cost of supply.

    Which of the following statement(s) is/are correct?

    a. Only I
    b. I and II
    c. I and III
    d. All of the above

    Answer: d

    Explanation: Discoms have a key role in the power sector, acting as an interface between retail consumers and rest of the value chain. These companies act as intermediaries between generators and retail consumers, purchasing electricity from   wholesale markets and marketing it to retail consumers. As with any other market intermediary, they recover returns on their equity investments (ROI) by charging a mark-up over their cost of supply. Given that these discoms are central to connecting both sides of the electricity market, their debt overhang has traditionally been a bottleneck for the sector.

    7. Under which of the following policy/act the Open Access (OA) Policy was introduced?

    a. Electricity Act 2003
    b. Electricity Act 2006
    c. National Tariff Policy, 2006
    d. National Tariff Policy, 2016

    Answer: a

    Explanation: The Open Access (OA) policy introduced under Electricity Act 2003, allows consumers with electricity load above 1 MW to procure electricity directly from electricity markets.

    8. Consider the following statements regarding the Open Access (OA) Policy in India:

    I. At its core, OA provides an aggregation of the country-wide supply and demand on the same platform.
    II. In 2008, power exchanges were set up to operationalise OA and create a national electricity market where price discovery occurs through competitive bidding.
    III. OA allows consumers with electricity load above 1 MW to procure electricity directly from electricity markets.

    Which of the following statement(s) is/are correct?

    a. Only I
    b. I and II
    c. I and III
    d. All of the above

    Answer: d

    Explanation: The Open Access (OA) policy introduced under Electricity Act 2003, allows consumers with electricity load above 1 MW to procure electricity directly from electricity markets. At its core, OA provides an aggregation of the country-wide supply and demand on the same platform. In 2008, power exchanges were set up to operationalize OA and create a national electricity market where price discovery occurs through competitive bidding. OA policy allows consumers with electricity load above 1 MW to procure electricity directly from electricity markets.

    Click here for Questions of Various chapters of Economic Survey 2015-16

    Register to get FREE updates

      All Fields Mandatory
    • (Ex:9123456789)
    • Please Select Your Interest
    • Please specify

    • ajax-loader
    • A verifcation code has been sent to
      your mobile number

      Please enter the verification code below

    This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK
    X

    Register to view Complete PDF