Uttar Pradesh Power Corporation Limited

Uttar Pradesh Power Corporation Limited (UPPCL) is the company responsible for electricity transmission and distribution within the Indian state of Uttar Pradesh.^[1][2] Its chairman is Shri Alok Kumar

Restructuring

For efficient operation & management Uttar Pradesh Power Corporation Limited (UPPCL) is further restructured into;

• Dakshinanchal Vidyut Vitaran Nigam Limited (DVVNL) - Agra Zone Discom
• Madhyanchal Vidyut Vitaran Nigam Limited (MVVNL) - Lucknow Zone Discom
• Pashchimanchal Vidyut Vitaran Nigam Limited (PVVNL) - Meerut Zone Discom
• Purvanchal Vidyut Vitaran Nigam Limited (PUVVNL) - Varanasi Zone Discom
• Kanpur Electricity Supply Company (KESCO) - Kanpur City Discom
• Lucknow Electricity Supply Administration (LESA) - Lucknow City Discom
• Uttar Pradesh Power Transmission Corporation Limited (UPPTCL) - State Transmission Utility

Power Procurement

Uttar Pradesh Power Corporation Limited (UPPCL) procures power from state government owned power generators (Uttar Pradesh Rajya Vidyut Utpadan Nigam & Uttar Pradesh Jal Vidyut Nigam Limited), central government owned power generators (NTPC Limited & THDC Ltd) and Independent Power Producers - IPP (mostly private power companies) through power purchase agreement for lowest per unit cost of electricity.

Financial Condition & Line losses

The total loss of the UP Power Corporation Limited (UPPCL) is estimated somewhere between Rs 29,000 crore to 55,000 crore. Thus UPPCL is finding it hard to make payment to state, central and other private power companies against electricity procurement.

The causes of such a poor financial conditions of UPPCL include:

• Higher line losses due to aging over stressed infrastructure
• Pilferage of power at large scale
• Inferior quality of transformers and other equipments
• Selling power much below its purchasing cost

Discom wise Aggregate Technical & Commercial (AT & C) Loss / Total line losses (in %) for a period of 2010-11;

• Dakshinanchal Vidyut Vitaran Nigam Limited (DVVNL) - 46.80%
• Madhyanchal Vidyut Vitaran Nigam Limited (MVVNL) - 39.10%
• Pashchimanchal Vidyut Vitaran Nigam Limited (PVVNL) - 31.60%
• Purvanchal Vidyut Vitaran Nigam Limited (PUVVNL)[5] - 29.72%

Power Plants SPVs

In line of Power Finance Corporation, UPPCL created SPVs (Shell Companies);

• To attract private investment in implementation of New Power Plant Projects in state of Uttar Pradesh,
• To meet the growing power demand of Uttar Pradesh state,
• To procure power at lowest possible feasible rates.

The Role of SPVs (Shell Companies) are preparing feasibility report (including Technology, Size, Coal linkages, Land & Water issues), all clearances (including environment clearances) & Land Acquisition etc. These SPVs (Shell Companies) are transferred to developer private company through bidding for lowest per unit cast of selling electricity to UPPCL.

UPPCL SPVs;

• Bara Thermal Power Project, Prayagraj Power Generation Company Limited (Tehsil - Bara, Distt. Allahabad) - 3 x 660 MW
• Karchana Thermal Power Station, Sangam Power Generation Company Limited (Tehsil - Karchana, Distt. Allahabad) - 2 x 660 MW (Under Construction)

References