Uttar Pradesh Unveils Ambitious Rs 65,926 Crore Energy Sector Budget
In a significant move to overhaul the state's electricity infrastructure, Uttar Pradesh Finance Minister Suresh Khanna has proposed a massive outlay of Rs 65,926 crore for the energy sector in the latest budget. This allocation marks an 8% increase compared to the previous year, underscoring the government's aggressive drive to enhance power reliability, operational efficiency, and overall consumer experience across the state.
Strategic Budget Allocation: Capital and Revenue Investments
The budget is strategically structured to combine capital investments with revenue-side support, ensuring both long-term infrastructure development and immediate operational needs are addressed. Capital investments, which involve funds for building future assets, amount to Rs 20,103 crore. Meanwhile, revenue provisions for day-to-day expenses total Rs 38,257 crore, aimed at keeping power affordable while strengthening the grid.
On the capital front, the state has earmarked approximately Rs 17,019.80 crore specifically for generation, transmission, and distribution projects. This includes substantial allocations for modernizing the power network and expanding capacity to meet growing demand.
Smart Metering: A Cornerstone Initiative
A key highlight of the budget is the focus on smart metering, with Rs 4,155.17 crore allocated under a dedicated head to expand prepaid and Advanced Metering Infrastructure (AMI) meters statewide. Officials emphasize that smart meters will play a crucial role in reducing aggregate technical and commercial losses, enabling accurate billing, and providing consumers with real-time visibility into their electricity consumption.
This initiative is expected to significantly improve the financial health of distribution companies (discoms) and enhance service quality, making it a pivotal step toward a more efficient power sector.
Strengthening Infrastructure and Reducing Losses
The budget reinforces Uttar Pradesh's participation in the Revamped Distribution Sector Scheme (RDSS), with specific allocations for loss-reduction works, IT/OT modernization, and household electrification. Key provisions include:
- Rs 2,920.99 crore for loss-reduction initiatives
- Rs 1,650 crore for IT/OT system upgrades
- Rs 1,045.19 crore for household electrification and feeder segregation
To harden the grid and prepare for future demand growth, the budget allocates Rs 4,000 crore for strengthening the distribution network under the Uttar Pradesh Power Corporation Limited (UPPCL). Additionally, Rs 583 crore is designated for priority transmission schemes through the UP Power Transmission Corporation.
Ensuring Summer Reliability and Supporting Consumers
Recognizing the critical need for uninterrupted power during peak seasons, the government has provisioned Rs 3,500 crore for summer reliability measures between April and September. This includes targeted assistance lines such as tariff support for private tube-well consumers and compensation to UPPCL for revenue shortfalls, ensuring that power remains accessible and affordable.
Boosting Clean Energy and Renewable Integration
On the clean energy front, the budget highlights a proposed outlay of about Rs 2,104 crore for additional energy sources, more than double the allocation from last year. Under policies like the UP Solar Energy Policy-2022, State Bio-Energy Policy-2022, and UP Green Hydrogen Policy-2024, the government has set an ambitious five-year target of achieving 22,000 MW of renewable energy capacity.
The plan also continues support for the Green Energy Corridor-II, facilitating the evacuation and integration of renewable power through state allocations and dedicated loan lines, further cementing Uttar Pradesh's commitment to sustainable energy development.
