UP aiming to add over 35,000 Mw capacity in next seven years

Uttar Pradesh, which has ambitious targets in the power sector, is working towards augmenting its power generation capacity by over 35,000 Megawatt (Mw) in the next 6-7 years.

State power utility UP Power Corporation Limited (UPPCL) director (finance) S K Agarwal said the additional capacity would mainly come from the memorandum of understanding (MoU) route, case II bidding process and government-run units.

While in MoU route, the state government has already signed agreements with private and central public sector enterprises for 15,677 Mw, the case II bidding would account for 9,470 Mw. The state power utilities would add another 5,550 Mw.

Giving his presentation in a seminar on ‘Development of Power Sector in UP’, Agarwal said 6,832 Mw would accrue from other sources, which would mean total power addition by over 35,000 Mw.

The event was organised by the Independent Power Producers Association of India (IPPAI) in association with PHD Chamber and India Energy Exchange (IEX).

He informed UP was targetting to invest Rs 52,000 crore in transmission sector, of which the private sector share would be Rs 10,000 crore.

“In the power distribution sector, we plan to invest over Rs 31,000 crore, including electrification of rural hamlets, which alone would account for over Rs 12,000 crore,” he added.

The event witnessed participation of stake holders from across the power spectrum, including regulators, government bodies, industries, academics and researchers from the energy sector.

The event addressed issues like the progress of power sector in UP, options available for power generation: challenges and way ahead, fuel supply concerns, status of distribution reforms, options for PPP/franchise model, open access and its role in mitigating power shortages and alternative energy solutions.

IPPAI director general Harry Dhaul told Business Standard that UP had done a commendable job of setting up ambitious targets, so that it would work towards it.

“Several factors are beyond the control of the state government, such as coal linkage and environment clearance,” he said. State power minister Ramvir Upadhyay and state power secretary and UPPCL CMD Navneet Sehgal also addressed the occasion.