UP Power Corporation seeks bailout from Yogi Adityanath

Uttar Pradesh Power Corporation Ltd (UPPCL) has sought financial assistance of Rs 18,000 crore for the current fiscal from the state government. In a presentation to Chief Minister Yogi Adityanath yesterday, the corporation urged him to bail it out.

“It [UPPCL] said that it required financial assistance of Rs 18,000 crore during the current financial year and Rs 12,000 crore immediately to bridge the cash gap caused by various factors, including non-payment of electricity bills by government departments,” the Hindustan Times reported (https://www.hindustantimes.com/cities/lucknow-news/uppcl-seeks-immediate-assistance-of-12-000-cr-from-yogi-adityanath-govt-101624738082813.html).

Among others, State Energy Minister Shrikant Sharma, Chief Secretary Rajendra Kumar Tiwari, Additional Chief Secretary (Energy) Alok Sinha, Additional Chief Secretary (Finance) Radha Chauhan, and UPPCL Chairman M. Devraj attended the meeting.

“The CM, according to an official who attended the meeting, directed the officials to find ways to pull UPPCL out of the immediate financial crisis, but at the same time he also asked the UPPCL to increase its income by plugging in leakages and improving billing efficiency,” the report said.

The presentation highlighted the woes the corporation is facing. UPPCL’s cumulative deficit stood at Rs 90,500 crore which included Rs 81,612.07 crore debt liabilities and Rs 24,461 crore power purchase liabilities. The corporation also had to pay Rs 3,000 crore to the coal companies.