UPPCL Seeks Extra Funds Under Power Reform Scheme
POWER & RENEWABLE ENERGY

UPPCL Seeks Extra Funds Under Power Reform Scheme

The supplementary grant budget tabled in the Uttar Pradesh Vidhan Sabha on Monday shows that Uttar Pradesh Power Corporation Limited (UPPCL) has sought an additional Rs 37.44 billion to compensate losses incurred by its five distribution companies under the Revamped Distribution Sector Scheme (RDSS).

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.

The supplementary grant budget tabled in the Uttar Pradesh Vidhan Sabha on Monday shows that Uttar Pradesh Power Corporation Limited (UPPCL) has sought an additional Rs 37.44 billion to compensate losses incurred by its five distribution companies under the Revamped Distribution Sector Scheme (RDSS). 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.

Next Story
Infrastructure Urban

InsideFPV Delivers ₹10 Crore Kamikaze Drone Order Under MoD’s EPR Route

InsideFPV, a Surat-based drone technology manufacturer, has successfully executed a ₹10 crore defence contract to supply indigenous kamikaze drones under the Ministry of Defence’s Emergency Procurement Route (EPR). The company completed the delivery of hundreds of FPV kamikaze drone platforms within a rapid two-month timeframe, highlighting its ability to meet urgent military procurement timelines.The supply orders were fulfilled under the emergency procurement mechanism, which is aimed at fast-tracking acquisitions for immediate operational needs. InsideFPV’s quick execution reflects it..

Next Story
Infrastructure Energy

Vedanta Resources Secures Fitch Upgrade to ‘BB-’, Best Rating Since 2015

Vedanta Resources Limited (VRL), a global player in metals, oil & gas, critical minerals, power and technology, has received a credit rating upgrade from Fitch Ratings, marking its strongest bond rating in over a decade.Fitch has raised Vedanta Resources’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB-’ from ‘B+’, while maintaining a Stable Outlook. The agency also upgraded VRL’s senior unsecured rating, along with the ratings of US dollar-denominated bonds issued by Vedanta Resources Finance II Plc and guaranteed by VRL, to ‘BB-’.The upgrade represents Vedan..

Next Story
Real Estate

NAREDCO NextGen NCR Chapter Launched

The NAREDCO NextGen NCR Chapter was recently launched at Excelerate 2026 in Mumbai, marking a key step towards integrating emerging real estate leaders from the National Capital Region with the national platform. The initiative aims to promote sustainable and responsible urban development through collaboration and knowledge exchange.The event brought together young developers, entrepreneurs, and professionals from across NCR, including Noida, Gurugram, Ghaziabad, Faridabad, Bhiwadi, and Meerut. Discussions focused on urban development, finance, sustainability, innovation, and policy, emphasisi..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement