UP owes Rs 545 cr to sugar mills

UP Power Corporation owes more to private sugar mills in power generation dues than the latter owe to farmers in cane arrears

Uttar Pradesh power utility UP Power Corporation Limited (UPPCL) owes more to private sugar mills in power co-generation dues than the latter owe to farmers in cane arrears.

Against consolidated cane arrears of about Rs 355 crore for the 2011-12 crushing season on mills, UPPCL owes power co-generation dues of Rs 545 crore, pending since February till date.

This puts power dues on UPPCL vis-à-vis mills’ cane arrears at over 50 per cent higher. This would also mean that if the power utility immediately clears even the part of dues, the farmers might be instant beneficiaries.

The millers and UP Sugar Mills Cogen Association have made several representations to the UPPCL in this regard. They have maintained that as soon as the power dues were settled, the funds would be diverted to clear the cane farmers’ arrears.

While UPPCL has cleared all power dues of January and part for February 2012, the remaining dues are still pending. The state’s millers supply bagasse-based power to UPPCL under the power purchase agreement (PPA).

The power dues pertaining to February, March, April, May, June, July and August stand at about Rs 166 crore, Rs 155 crore, Rs 101 crore, Rs 84 crore, Rs 55 crore, Rs 10 crore and Rs 6.6 crore, respectively.