+
UP to Fast-Track Power Discom Privatisation in 42 Districts
POWER & RENEWABLE ENERGY

UP to Fast-Track Power Discom Privatisation in 42 Districts

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 UPERC flagged issues with the draft proposal, including outdated financial data based on the 2023–24 balance sheet, and directed the corporation to provide updated figures from 2024–25 for both the Agra (Dakshinanchal) and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.

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.

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code