Uttar Pradesh Power Corporation Limited (UPPCL), the state-run power utility, has run accumulated losses of almost Rs 43,000 crore.
The losses, which stood at Rs 151 crore at the end of March 2000, stood at Rs 42,745 crore as on March 31, 2011.
The UP State Electricity Board (UPSEB) was unbundled as UPPCL in 2000 with separate distribution companies (discoms) coming into existence for operational efficiency and accountability in the power sector.
At present, there are five dicoms in UP, namely Poorvanchal, Mandhyachal, Paschimanchal, Dakshinanchal and Kanpur Electricity Supply Company Limited (KESCO) catering to different regions.
In the five-year period between 2006-07 and 2010-11, the accumulated losses increased 155 per cent from Rs 16,700 crore to Rs 42,745 crore. Interestingly, the final loss figure is arrived at after factoring in subsidy by the state government lest the accumulated loss figure would only magnify.
The annual accounts of UPPCL pertaining to 2011-12 are still under preparation. However, considering the past record, the annual loss is likely to be over Rs 4,000 crore, which would further inflate the losses.
Recently, Chief Minister Akhilesh Yadav had also expressed concern over massive Aggregate Technical and Commercial (AT&C) losses.
Meanwhile, the corporation is mulling a multi-pronged strategy to deal with power pilferage, including theft and transmission losses, UPPCL chairman Anil Kumar Gupta told Business Standard.
UPPCL is working on a Rs 1,300 crore project to set up new 33 kva sub-stations at the tehsil level across the state to spruce up the power distribution infrastructure. Given the tight financial situation, it would raise loan to part finance the scheme. It is also energising engineers towards revenue generation and realisation of power dues. Besides, steps are being taken to improve the plant load factor (PLF) of state power generation units.
The PLF of state units is around 50 per cent, which should ideally be 75-80 per cent. Gupta said since most of these units were quite old, the PLF would be increased either through the renovation or setting up new plants.