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5) Schemes to allow for clean energy penetration at a large scale are hinging on serious power sector reforms. Critically analyze in this context the success of UDAY?(250 words)

Topic – Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

5) Schemes to allow for clean energy penetration at a large scale are hinging on serious power sector reforms. Critically analyze in this context the success of UDAY?(250 words)

Reference

Why this question

The article discusses the problems faced by the discoms in India and analyzes how far Uday has been successful in addressing such challenges. This question would enable you to prepare in detail the problems faced by discoms in India and how far Uday has been successful.

Key demand of the question

The question expects us to highlight the issues faced by discoms in India which create hindrances in setting ambitious renewable energy targets and establish the need for power sector reforms. Thereafter, we need to highlight the role of Uday in addressing such challenges and examine how far has it been successful.

Directive word

Critically analyze – When asked to analyze, you  have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary. When ‘critically’ is suffixed or prefixed to a directive, all you need to do is look at the good and bad of something and give a fair judgement.

Structure of the answer

Introduction – Highlight that India requires to accelerate itself on the path of clean energy. But even before that it needs to work on deepening electricity penetration in the country for which power sector reforms and imperative.

Body

  • Discuss the issues plaguing power generation , transmission etc in India and why power sector reforms are required
  • Explain about the Uday scheme and discuss how successful has it been –
    • a) Bad Loans – The Banks have provided Loans to Public Sector Power Generation Companies which they failed to recover and hence this resulted in accumulation of Bad Loans in Sector.
      b) Distribution Losses – Although UDAY succeeded in cutting down Distribution losses by around 21% , a Major share of Losses is still left which is a major challenge for DISCOMS.
    • Electricity Theft – Electricity Theft is not curbed completely and hence possess major challenge to DISCOMS.
    • Metering and Billings – The inadequacy in Metering and Billing Process is a major challenge to DISCOMS in gaining Economic Stability.
  • Discuss what more needs to be done
    • Strict Actions to curb Electricity theft and other actions that lead to Losses to DISCOMs.
    • Integrating UDAY scheme with Make in India and Startup India to ensure overall Development.
    • Integrating UDAY with KUSUM to increase amount of electricity to DISCOMS.

Conclusion – Give your view and discuss way forward.