Power reforms irreversible: UP govt

State to add 25,000 Mw capacity by 2017.

The Uttar Pradesh government on Monday assured industry that power sector reforms in the state were irreversible and its energy sector roadmap would ensure abundant availability of electricity by 2017.

“UP plans to augment power generation capacity by 25,000 Mw in the next seven years with the help of the private sector,” Infrastructure and Industrial Development (IIDC) Commissioner Anoop Mishra said, addressing Samriddhi, a Business Standard roundtable here. The topic of the deliberations was ‘Uttar Pradesh: The Development Agenda’. Last year also, discussions were held under the same topic.

Mishra noted that improvements in transmission and distribution infrastructure were a major part of the power sector reforms undertaken by the state government.

“Till the 1990s, there had been no substantial augmentation in the state power generation capacity. Now, our priority is to add power capacity with the help of private sector through public-private partnerships (PPPs), joint ventures, memoranda of understanding and co-generation by sugar mills,” he said.

Power has been the bane of UP’s industry, with the current demand-supply gap widening to almost 3,000 Mw. The current demand in the state is estimated at 10,000 Mw.

He said the government had undertaken an input-based franchisee distribution model in cities like Agra and Kanpur for economising on power, while the process would soon be rolled out in nine other towns.

“While, the distribution system in Agra has already been handed over to a private partner, things are moving in a similar direction for Kanpur,” he said.

Mishra maintained that coal availability was a bigger challenge for UP than production, as most upcoming plants were thermal units.

Other panelists on the 90-minute roundtable included State Bank of India (SBI) Chief General Manager B V Chaubal, Indian Industries Association President Anil Gupta, K M Sugar Mill Chairman L K Jhunjhunwala, Lucknow University Professor Arvind Mohan and Jet Knitwear Managing Director Balram Narula.

IIDC also touched upon other infrastructure projects undertaken by UP, such as access control expressways, for speedier development.

Narula regretted that although the state government had undertaken several welcome initiatives, things were not moving as fast as industry had desired.

Gupta raised the topic of tax rates and demanded that UP issue a White Paper on infrastructure, detailing a time-bound plan for power sector reforms.

Chaubal observed that since UP was an agro-based economy, SBI was giving due importance to providing banking facilities in the rural pockets by opening new branches and ushering in mobile banking solutions.

“We have also simplified loan procedures for faster dispensation of credit to industry, while collateral-free loan of up to Rs 1 crore is being provided,” he said.

Mohan referred to the second-generation reforms, wherein UP, Bihar and Orissa were bound to play a major role in propping up India’s economy.

“The small and medium sector should have a continuous dialogue process with the government,” he said, while contrasting the Indian infrastructure development model with that of China, adding that the latter kept its timeline.