UPPCL Seeks Extra Funds Under Power Reform Scheme

The request comes shortly after the Union Ministry of Power, in a report presented in the Lok Sabha, commended Uttar Pradesh for reducing its outstanding power-sector debt by 25 per cent over the past five years, attributing the improvement to reforms introduced through the RDSS.

UPPCL has also sought Rs 1 billion for reimbursement of State Goods and Services Tax linked to RDSS-related works, including loss-reduction initiatives, IT and OT upgrades, and the installation of armoured cables.

The Centre has already sanctioned Rs 440.94 billion under the RDSS for Uttar Pradesh’s five distribution companies—DVVNL, MVVNL, PVVNL, PuVVNL and KESCO—to undertake smart metering, loss-reduction projects, modernisation and system augmentation.

Citing the power ministry’s December 11 report presented by Minister of State for Power Shripad Naik, Avadhesh Kumar Verma, a member of the state advisory committee of the Uttar Pradesh Electricity Regulatory Commission, said the RDSS had helped strengthen the state’s power infrastructure, reduce technical and commercial losses, and improve fiscal discipline. He noted that Uttar Pradesh’s power-sector debt declined from Rs 819.52 billion in 2020–21 to Rs 613.95 billion in 2024–25. However, he questioned the latest demand for compensation, saying UPPCL must clearly explain the breakup of losses if the scheme is being projected as a success.

Overall, UPPCL has sought Rs 45.21 billion in additional funding in the supplementary budget for 2025–26. This includes Rs 5 billion for strengthening the electricity distribution network and Rs 1.77 billion for power projects of Tehri Hydro Development Corporation India Limited.