Free power to BPL families: UP government in ‘borrow’ mode

In order to meet the needs of offering free power connection to below poverty line (BPL) families in the state, UP government will require at least Rs 60 to 70 crore, which the UPPCL plans to borrow from the Power Finance Corporation Limited.

But project implementation does not seem straightforward as UPPCL distribution companies are facing big losses despite Rs 39,000-crore bailout package it got from the Centre’s Ujwal DISCOM Assurance Yojna.

An MoU pertaining to this issue was signed between the Centre and the previous Akhilesh Yadav government.

With UP facing huge line losses because of technical fault or theft, the concept is to reduce losses by metering consumers so that they end up paying for the electricity amount they used.

While ideally the government is pretty much ready to minimize aggregate technical and commercial losses to 15 per cent by 2019.

The UP government had signed the ‘Power For All’ agreement with the Centre in April.

Week back, UPPCL had organised 624 camps in the state, handing over on-the-spot connections to 86,000 families.