UPSC Prelims Practice Questions — DISCOMs and the road ahead
Q1. In the context of India's power distribution sector, the term 'Aggregate Technical & Commercial (AT&C) loss' of a DISCOM refers to which one of the following?
- A. The combined loss arising from technical energy losses in the network and commercial inefficiencies in billing and collection
- B. The shortfall between the average cost of supplying a unit of electricity and the average revenue realised per unit
- C. The accumulated book loss carried on a DISCOM's balance sheet due to delayed release of State government subsidies
- D. The gap between the sanctioned generation capacity tied up by a DISCOM and the energy actually drawn from generators
Q2. Among the 72 distribution utilities (DISCOMs) currently operating in India, which one of the following categories accounts for the largest share by number?
- A. State-owned distribution utilities
- B. Private-sector distribution licensees
- C. State government power departments
- D. Central public sector distribution undertakings
Q3. With reference to the Revamped Distribution Sector Scheme (RDSS), consider the following statements:
1. It targets reduction of pan-India AT&C losses to 12-15%.
2. It seeks to bring the ACS-ARR gap of DISCOMs to zero by 2024-25.
3. It makes privatisation of all State-owned DISCOMs mandatory before the end of the scheme period.
4. It provides conditional financial support for prepaid smart metering and upgradation of distribution infrastructure.
Which of the statements given above is/are NOT correct?
- It targets reduction of pan-India AT&C losses to 12-15%.
- It seeks to bring the ACS-ARR gap of DISCOMs to zero by 2024-25.
- It makes privatisation of all State-owned DISCOMs mandatory before the end of the scheme period.
- It provides conditional financial support for prepaid smart metering and upgradation of distribution infrastructure.
- A. 1 and 2 only
- B. 3 only
- C. 3 and 4 only
- D. 2 and 3 only
Q4. With reference to the reform trajectory of India's power distribution sector, consider the following statements:
1. The unbundling of State Electricity Boards into separate generation, transmission and distribution entities was enabled by the Electricity Act, 2003.
2. As per official data, the all-India AT&C losses of DISCOMs declined to about 15% in FY 2024-25.
3. The Revamped Distribution Sector Scheme (RDSS) succeeded the Ujwal DISCOM Assurance Yojana (UDAY) as the flagship distribution sector reform scheme.
4. RDSS has been approved with a total outlay of about ₹3.03 lakh crore for the period FY 2021-22 to FY 2025-26.
Which of the statements given above is/are correct?
- The unbundling of State Electricity Boards into separate generation, transmission and distribution entities was enabled by the Electricity Act, 2003.
- As per official data, the all-India AT&C losses of DISCOMs declined to about 15% in FY 2024-25.
- The Revamped Distribution Sector Scheme (RDSS) succeeded the Ujwal DISCOM Assurance Yojana (UDAY) as the flagship distribution sector reform scheme.
- RDSS has been approved with a total outlay of about ₹3.03 lakh crore for the period FY 2021-22 to FY 2025-26.
- A. 1 and 2 only
- B. 2, 3 and 4 only
- C. 1, 3 and 4 only
- D. 1, 2, 3 and 4
Q5. As per official enumeration, what is the total number of electricity distribution utilities (DISCOMs) currently functioning across India?