After nearly a year of delays and protests lasting over 300 days, the Uttar Pradesh government is preparing to accelerate the privatisation of power distribution across 42 districts under the Agra and Varanasi power distribution companies (discoms). The move follows the return of Chief Secretary S.P. Goyal from medical leave, who is expected to fast-track pending decisions.

A senior Energy Department official said the process had been delayed for nearly two months due to administrative changes. “Now that the Chief Secretary has resumed office, the process will be expedited. As chairperson of the Energy Task Force (ETF), he plays a key role in decisions concerning the state’s power sector,” the official added.

The Uttar Pradesh Power Corporation Limited (UPPCL) is now preparing its response to the Uttar Pradesh Electricity Regulatory Commission (UPERC), which in June raised more than two dozen queries about the privatisation proposal.

The commission had sought clarifications after UPPCL requested its opinion on the state government’s directive. UPERC flagged issues with the draft proposal, including outdated financial data based on the 2023–24 balance sheet, and directed the corporation to provide updated figures from 2024–25 for both the Agra (Dakshinanchal) and Varanasi (Purvanchal) discoms.

Officials familiar with the matter said the regulator also sought clarity on key operational aspects—such as power allocation for private players, the extension of state subsidies (particularly free power for farmers), the valuation of assets, and the treatment of regulatory liabilities. Certain legal and procedural issues were also raised.

UPPCL Chairman Ashish Kumar Goel confirmed that the corporation would soon file its response.

“We will very soon provide replies to all the queries raised by UPERC in June,” he said, adding that the transaction advisor was continuing work as per schedule.

Once UPPCL submits its reply, the privatisation process is expected to gather pace. Although UPERC’s role is primarily advisory, its opinion is a necessary procedural step before issuing formal tenders.

Following the regulator’s clearance, UPPCL will release a Request for Proposal (RFP) prepared by its consultant, inviting private players to bid for the power distribution operations of the new companies to be formed after the unbundling of the Agra and Varanasi discoms.

The privatisation plan is part of the state’s larger effort to improve efficiency, financial health, and service reliability in the power sector.