UP Budget Anchors Rs 659.26 bn Energy Push
POWER & RENEWABLE ENERGY

UP Budget Anchors Rs 659.26 bn Energy Push

The Uttar Pradesh government allocated Rs 659.26 billion (bn) to the energy sector in its FY26 budget, an increase of eight per cent from the previous year and with the fiscal deficit capped at three per cent. The allocation reflects a shift towards an infrastructure-led energy transition prioritising grid reinforcement and clean energy rollout rather than target-driven announcements.

Over the past three years the state has undertaken extensive grid strengthening, constructing or augmenting 2,410 new 33/11 kV substations, installing more than 20,900 distribution transformers and enhancing the capacity of over 85,000 transformers. These investments are intended to underpin higher loads and facilitate renewable integration, and they have raised supply hours to around 19 in rural areas, nearly 22 at tehsil headquarters and 24 at district headquarters.

The budget increases support for additional energy sources to Rs 21.04 billion (bn), with emphasis on decentralised solar. Ayodhya, Mathura and 17 municipal corporations are being developed as solar cities while rooftop solar, rural solar street lighting and solar systems are being scaled. Utility-scale solar parks with battery energy storage systems are planned in the Bundelkhand region to firm renewable supply.

Agriculture remains central to the strategy, with Rs 15 billion (bn) allocated for the PM-KUSUM scheme and plans for individual pump solarisation and feeder-level solarisation of around 1,700 megawatt (MW). Since April 2022 the state has issued over 0.241 million (mn) private tubewell connections, which is expected to improve farm-level energy security and ease subsidy pressure.

Emerging technologies are supported through institutional measures, including two Centres of Excellence for green hydrogen at HBTI Kanpur with IIT Kanpur and at MMTU Gorakhpur with IIT BHU to build capabilities. Bioenergy receives continued focus after 36 compressed biogas plants were set up under the state policy and further expansion is planned to leverage agricultural residue.

Capital expenditure remains a priority at 19.5 per cent of the budget. The total outlay is equivalent to Rs 9.13 trillion (tn), underscoring an infrastructure-heavy approach to crowd in private participation by ensuring grid readiness and policy continuity while containing fiscal risk.

The Uttar Pradesh government allocated Rs 659.26 billion (bn) to the energy sector in its FY26 budget, an increase of eight per cent from the previous year and with the fiscal deficit capped at three per cent. The allocation reflects a shift towards an infrastructure-led energy transition prioritising grid reinforcement and clean energy rollout rather than target-driven announcements. Over the past three years the state has undertaken extensive grid strengthening, constructing or augmenting 2,410 new 33/11 kV substations, installing more than 20,900 distribution transformers and enhancing the capacity of over 85,000 transformers. These investments are intended to underpin higher loads and facilitate renewable integration, and they have raised supply hours to around 19 in rural areas, nearly 22 at tehsil headquarters and 24 at district headquarters. The budget increases support for additional energy sources to Rs 21.04 billion (bn), with emphasis on decentralised solar. Ayodhya, Mathura and 17 municipal corporations are being developed as solar cities while rooftop solar, rural solar street lighting and solar systems are being scaled. Utility-scale solar parks with battery energy storage systems are planned in the Bundelkhand region to firm renewable supply. Agriculture remains central to the strategy, with Rs 15 billion (bn) allocated for the PM-KUSUM scheme and plans for individual pump solarisation and feeder-level solarisation of around 1,700 megawatt (MW). Since April 2022 the state has issued over 0.241 million (mn) private tubewell connections, which is expected to improve farm-level energy security and ease subsidy pressure. Emerging technologies are supported through institutional measures, including two Centres of Excellence for green hydrogen at HBTI Kanpur with IIT Kanpur and at MMTU Gorakhpur with IIT BHU to build capabilities. Bioenergy receives continued focus after 36 compressed biogas plants were set up under the state policy and further expansion is planned to leverage agricultural residue. Capital expenditure remains a priority at 19.5 per cent of the budget. The total outlay is equivalent to Rs 9.13 trillion (tn), underscoring an infrastructure-heavy approach to crowd in private participation by ensuring grid readiness and policy continuity while containing fiscal risk.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement