Ministry Of Power

Official policy releases, schemes, circulars, and Prelims practice questions from Ministry Of Power distilled for UPSC Civil Services Examination.

🎯 Ministry Of Power UPSC Practice Questions

🎯 UPSC Prelims Practice Drill

Economy

The sharp rise in average cost of supplying power by state‑owned distribution companies (discoms) in 2022‑23 was primarily attributed to which of the following factors?

  • [A] A four‑fold increase in overall financial losses of discoms
  • [B] A 10% rise in electricity demand during the year
  • [C] Higher coal imports at elevated global prices increasing the cost of electricity purchase
  • [D] Accumulated losses of over three lakh crore rupees since 2017‑18
▶ Reveal Official Answer & Analytical Explanation
✓ Correct Option: [C] Higher coal imports at elevated global prices increasing the cost of electricity purchase

The text states that higher electricity demand required increased coal imports at higher global prices, which significantly contributed to the rising cost of electricity purchase for discoms, driving up the average cost per unit. The other options describe outcomes or unrelated factors, not the direct cause of the cost increase.

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🎯 UPSC Prelims Practice Drill

Economy

Which of the following is NOT a structural issue faced by state‑owned power distribution companies (discoms) as mentioned in the report?

  • [A] Long‑term power purchase agreements lock in high costs
  • [B] Delayed subsidies create cash‑flow constraints
  • [C] Tariffs are revised infrequently
  • [D] Rising coal import costs
▶ Reveal Official Answer & Analytical Explanation
✓ Correct Option: [D] Rising coal import costs

The report lists long‑term PPAs, delayed subsidies and infrequent tariff revisions as structural problems that keep discoms in deficit. Rising coal import costs, while a major contributor to losses, is a market‑driven factor and not a structural issue. Hence option D is the correct answer.

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Official Policy Notifications & Dossiers

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