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UPSC IAS Prelims Exam : Economic Survey 2015-16 Questions : POWERING ‘ ONE INDIA’ SET II

Apr 29, 2016 17:56 IST

    Indian Economy plays a major role in the IAS Exam preparation as it is one of the largest section from where a good number of questions are always asked in the IAS Prelims Exam. Economic Survey is a good source of Indian Economy Questions for the IAS Prelims Exam.

    To practice for the IAS Prelims Exam following are the some of the questions form Economic Survey 2015-16.

    Q.1.    UDAY scheme

    a) 24 X 7 electricity to rural BPL house hold

    b) improve health and performance of distribution companies

    c) Electricity to rural BPL farmers

    d) Electrification of all villages

    Answer: b

    Explanation: Ujwal DISCOM Assurance Yojana (UDAY)─to improve the health and performance of the distribution companies. Central and State governments have come together to address problems related to the health of distribution companies, and the debt overhang problem via the Ujwal DISCOM Assurance Yojana (UDAY).

    Q.2. Which of the following is/are true about UDAY scheme?

    1. Financial losses of DISCOMS not to be addressed by banks through short term debt

    2. Substitution of imported coal by domestic coal

    3. Reduction of Aggregate Technical & Commercial (AT&C) losses

    Select the correct answer from the following codes

    a.    Only 1

    b.    Only 1 and 2

    c.    Only 2 and 3

    d.    1,2 and 3

    Answer: d

    Explanation:  Ujwal DISCOM Assurance Yojana (UDAY)

    1. States shall take over 75 per cent of discom debt outstanding as of September 2015. 2. Reduction of Aggregate Technical & Commercial (AT&C) losses to 15 per cent by 2018-19. 3. Reduction in difference between average cost of supply and average revenue realized (ARR) by 2018-19.

    4. Increased supply of domestic coal to substitute for imported coal. 5. States shall take over future losses of discoms in a phased manner. 6. Banks/FIs not to advance short term debt to discoms for financing losses.

    Q.3. Consider the following statements

    1.  IPDS strengthen distribution network in urban areas while DDUGJY does the same in rural areas.

    2.  Domestic Efficient Lighting Program (DELP) focuses to substitute LED bulbs in place of incandescent bulbs.

    Select the correct answer from the following codes

    a. Only 1

    b. Only 2

    c. Both 1 and 2

    d. Neither 1 nor 2

    Answer: c

    Explanation  : Integrated Power Development Scheme (IPDS) - Strengthening of sub-transmission and distribution network in urban areas. Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) - Electrification of all villages. Domestic Efficient Lighting Program (DELP) - LED bulbs to replace household and street light incandescent bulbs.

    Q.4. Which of the following is/are challenges hampering power sector?

    1. Complexity of tariff schedules

    2. Below average tariff costs of electricity supply

    3. High industrial tariffs

    Select the correct answer from the following codes

    a.    Only 1

    b.    Only 1 and 2

    c.    Only 2 and 3

    d.    1,2 and 3

    Answer: d

    Explanation: challenges hampering power sector are 1. Complexity of tariff schedules prevents economic actors from responding sufficiently to price signals. 2. Average tariffs in some cases are set below the average cost of supplying electricity. 3. High industrial tariffs and variable quality of electricity adversely affects ‘Make in India’. 4. Price and non-price barriers come in the way of single-nationwide electricity prices through open access. 5. Determination of progressive tariff schedules for domestic consumers.

    Q.5. With reference to power policies in India, Which of the following is/are not true?

    a. electricity tariffs are unusually low for Indian industry

    b. Wide variation in industrial tariff within India

    c. Nearly 50% of firms use diesel generators rather than depending on power supply.

    d. Trend of generating electricity from captive power plants is increasing

    Answer: a

    Explanation: Electricity tariffs are unusually high for Indian industry, especially when quality is taken into account. Electricity generation from captive power plants and electricity procured from the utilities could be exacerbated in the coming years, as the decline in oil prices and the cost of renewable energy alternatives may prompt a further shift to captive power. To protect against uneven power supply, about 47 percent of firms report using a diesel generator.10 The total capacity of the diesel generators11 (DG) in the country may be as high as 72 GW and growing at the rate of 5 GW per year.

    Q.6. Which of the following is/are true about Open Access (OA) policy?

    1. Introduced under Electricity Act 2003

    2. It aims to constitute single market price for power around the country.

    3. It provides stimulus to industrial production under Make in India intiatve.

    Select the correct answer from the following codes

    a.    Only 1

    b.    Only 1 and 2

    c.    Only 2 and 3

    d.    1,2 and 3

    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. Therefore, this constitutes a first step towards discovering a single market price for power around the country. While the financial ability of discoms to purchase electricity has diminished . The time is thus ripe to allow industry, which has a high demand for power, to absorb the excess generation capacity through OA, providing a stimulus to industrial production under ‘Make in India’.

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