Uttar Pradesh Power Corporation Limited

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) - Prayagraj, 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

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.

The total loss of the UP Power Corporation Limited (UPPCL) for the year ended on 31.03.2017 is estimated to be 8825 crores.[4] 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.
• Widespread corruption.
• Inefficient use of IT enabled infrastructure for administrative as well as technical purposes.

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%

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)