In a significant development for India's most populous state, Uttar Pradesh's power sector is demonstrating a marked turnaround, with a sharp decline in technical and commercial losses. This positive shift was highlighted by Union Minister of State for Power, Shripad Naik, in a reply presented in the Rajya Sabha on December 1.
Substantial Decline in Power Losses
The minister provided compelling data, revealing that technical and commercial (AT&C) losses in Uttar Pradesh have fallen from 27.11% in 2021 to 19.54% in 2025. This represents a reduction of over 7.5 percentage points, indicating improved efficiency and a stronger supply position. Notably, the state has also virtually eliminated the gap between peak electricity demand and its availability during the 2025-26 period.
Central Scheme and Funding Driving Change
Naik attributed this progress to the ongoing Revamped Distribution Sector Scheme (RDSS). He informed the House that a total of Rs 40,739 crore has been sanctioned for Uttar Pradesh under this scheme to reduce losses and improve financial health. This includes a central grant of Rs 16,570 crore.
"Under the RDSS scheme, Rs 40,739 crore has been sanctioned to reduce losses and improve financial health, including Rs 16,570 crore as central grant. Yet, even before the bulk of this money is spent, losses have dropped by over 7.5 percentage points," Naik stated.
The approved projects include the separation of 1,802 feeders and the allotment of 3.7 lakh solar pumps under the PM-KUSUM scheme. So far, Rs 5,774 crore has been released for critical projects such as feeder segregation, network upgrades, and the installation of smart meters.
Consumer Body Opposes Privatisation Move
Following the minister's reply, the Uttar Pradesh Rajya Vidyut Upbhokta Parishad (UPRVUP), a key consumer advocacy group, argued that the visible reforms make a strong case against the proposed privatisation of the power sector. The group has demanded the immediate withdrawal of the privatisation decision.
Avadhesh Kumar Verma, Chairman of UPRVUP and a member of the Central Advisory Committee on Power, strongly criticised the move. "Privatisation is unconstitutional and anti-consumer, especially when the government is investing heavily and reforms are visible," Verma said.
He further emphasised, "The reply in Rajya Sabha shows that from April to October 2025, peak demand was fully met, with negligible shortfalls. UP's power sector is on a strong recovery path. Privatisation is nothing but a conspiracy against the people of the state. The UPPCL must strengthen public power services instead of handing them to private hands."
The consumer body's stance underscores a growing debate on the future of power distribution in Uttar Pradesh, pitting the government's reform achievements against its proposed privatisation strategy.
