UP electricity body asks UPPCL to pay Rs 7,244 cr in regulatory fund
POWER & RENEWABLE ENERGY

UP electricity body asks UPPCL to pay Rs 7,244 cr in regulatory fund

The Uttar Pradesh electricity regulator asked the Uttar Pradesh Power Corporation (UPPCL) to deposit Rs 7,244.7 crore in a regulatory fund by January 2022 to meet the renewable purchase obligations (RPO) for FY2022 to clear the previous dues.

It would provide necessary payment assurance to solar, wind, and hydel power producers, which supply electricity to the state.

The amount that UPPCL has to deposit includes Rs 1,459.3 crore for being unable to meet the RPO targets till FY21, while the rest of the amount is for meeting the RPO targets for FY22. For the first time, the UP utility has asked to pay the RPO funds in advance.

The pending overdue is receivable for 45 days or more, and the power producers stand at Rs 5,688 crore at FY21. The regulator has directed UPPCL to route payments to renewable power producers through RPO funds to ensure that the developers get paid on time. Rs 709 crore has already been paid to the developers in the first three months of FY21 from the RPO funds.

To keep the liquidity flow of the discoms, the regulator has allowed UPPCL to deposit funds in 10 equal instalments between July 2021 and January 2022. According to the experts, the amount is equal to 10% of the state's annual power purchase cost.

For the cumulative shortfall of the RPO targets, the amount calculated is Rs 1 per unit for the electricity not procured by the state discoms till FY21. For FY22, the calculated amount is Rs 4.37 per unit, which is the average power purchase cost of the UP discoms. UPPCL has to submit their quarterly compliance reports of their deposited RPO funds, the regulator said.

As the RPO target shortfall till FY21 was much higher for non-solar and hydel sectors, compared with the solar power procurement, the regulatory has directed UPPCL to revisit its renewable power purchase strategy.

Image Source


Also read: Ministry of Power asks states to plan grid islanding for big cities

Also read: PGCIL to invest Rs 22.20 bn in power transmission network

The Uttar Pradesh electricity regulator asked the Uttar Pradesh Power Corporation (UPPCL) to deposit Rs 7,244.7 crore in a regulatory fund by January 2022 to meet the renewable purchase obligations (RPO) for FY2022 to clear the previous dues. It would provide necessary payment assurance to solar, wind, and hydel power producers, which supply electricity to the state. The amount that UPPCL has to deposit includes Rs 1,459.3 crore for being unable to meet the RPO targets till FY21, while the rest of the amount is for meeting the RPO targets for FY22. For the first time, the UP utility has asked to pay the RPO funds in advance. The pending overdue is receivable for 45 days or more, and the power producers stand at Rs 5,688 crore at FY21. The regulator has directed UPPCL to route payments to renewable power producers through RPO funds to ensure that the developers get paid on time. Rs 709 crore has already been paid to the developers in the first three months of FY21 from the RPO funds. To keep the liquidity flow of the discoms, the regulator has allowed UPPCL to deposit funds in 10 equal instalments between July 2021 and January 2022. According to the experts, the amount is equal to 10% of the state's annual power purchase cost. For the cumulative shortfall of the RPO targets, the amount calculated is Rs 1 per unit for the electricity not procured by the state discoms till FY21. For FY22, the calculated amount is Rs 4.37 per unit, which is the average power purchase cost of the UP discoms. UPPCL has to submit their quarterly compliance reports of their deposited RPO funds, the regulator said. As the RPO target shortfall till FY21 was much higher for non-solar and hydel sectors, compared with the solar power procurement, the regulatory has directed UPPCL to revisit its renewable power purchase strategy. Image Source Also read: Ministry of Power asks states to plan grid islanding for big cities Also read: PGCIL to invest Rs 22.20 bn in power transmission network

Next Story
Infrastructure Transport

JNPA Becomes First Indian Port to Cross 10 Million TEU Capacity

The Jawaharlal Nehru Port Authority (JNPA), located at Uran in Navi Mumbai, has become the first port in India to achieve over 10 million TEUs (twenty-foot equivalent units) in container handling capacity.With the recent expansion, the port now operates five container terminals with a combined capacity of 10.4 million TEUs, alongside two liquid and two general cargo terminals.Handling more than half of India’s container traffic, JNPA processed 7.05 million TEUs in 2024 and has moved 15.39 million tonnes of containers and 16.64 million tonnes of total cargo in the first two months of FY 2025â..

Next Story
Infrastructure Transport

Nod for Rs. 36.26 billion Expansion of Pune Metro Line 2

The Union Cabinet has approved the Rs.36.26 billion expansion of Pune Metro Line 2, adding 12.75 km of track and 13 new stations to improve east–west connectivity across the city.The project aims to link Pune’s urban core with rapidly growing suburbs, supporting the city’s rising demand for efficient and sustainable transport solutions. This expansion is part of Corridor 2 of the Pune Metro and includes two key routes: Vanaz to Chandani Chowk (Corridor 2A) and Ramwadi to Wagholi/Vitthalwadi (Corridor 2B).It will connect residential, IT, and educational hubs in areas such as Bavdhan, Koth..

Next Story
Infrastructure Transport

Assembly begins for ‘Nayak’ TBM on Thane– Borivali Twin Tunnel Project

The assembly of ‘Nayak’, the first of four Tunnel Boring Machines (TBMs) for the Thane–Borivali Twin Tube Tunnel Project, has commenced at the Thane site. Built by German firm Herrenknecht AG and deployed by Megha Engineering & Infrastructure (MEIL), the TBM marks a key milestone in Mumbai’s ambitious 11.8-km underground road corridor beneath Sanjay Gandhi National Park.The twin tunnels will reduce the Thane–Borivali travel distance by 12 km and decongest Thane Ghodbunder Road. ‘Nayak’, with a 13.2-metre diameter, is designed to bore through challenging geological conditions ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?