UPPCL awaits another loan of Rs 4,900 crore from PFC-REC

In its action plan for FY21 to FY24, UPPCL has promised to achieve key operational parameters, such as bringing down the AT&C losses to below 15% by 2024 and improving collection efficiencies.

The Uttar Pradesh Power Corporation (UPPCL) has sought and received state government guarantees for PFC-REC loans of nearly Rs 4,900 crore for payment of outstanding dues of central generating stations, independent power producers and renewable energy generators.

As of July 31, UPPCL’s pending dues to gencos had risen to Rs 24,461 crore, out of which dues of central generating stations amount to Rs 4,270 crore, while that of independent power producers are of Rs 4,675 crore. Dues payable to renewable energy generators are Rs 388 crore, while those of state generating stations are Rs 15,128 crore.

Against Rs 2,873 crore that is to yet to be paid by UPPCL, Rs 919 crore has been outstanding for more than 45 days, sources said.

Sources in UPPCL have confirmed that the government has written to NTPC requesting it not to disconnect supply. “We are expecting Rs 4,900 crore loan from PFC and REC any day and hope to clear the NTPC’s dues using the same amount,” a senior UPPCL official said, requesting anonymity. “The state cabinet has already given its approval for the state guarantee, and the loan amount is expected to be disbursed in a day or two,” he said.

Under the Atmanirbhar Bharat package to infuse liquidity in the sector and help discoms clear dues to electricity generators till March 2020, the Centre had released Rs 20,940 crore in two tranches. When the scheme was extended till June 2020, an additional Rs 7,000 crore was released. After this, dues had dipped substantially, but they have seen a gradual rise again.

In its action plan for FY21 to FY24, UPPCL has promised to achieve key operational parameters, such as bringing down the AT&C losses to below 15% by 2024 and improving collection efficiencies. It also plans to install prepaid smart meters for all consumers in the state, including government connections.

Almost 40% energy is supplied to rural consumers in Uttar Pradesh, where revenue collection has been difficult. Apart from this, domestic consumption accounts for 47%, where the tariff is below the cost of service. To add to the UPPCL’s woes, under the Saubhagya scheme, the major increase was in rural consumer base, from whom recovery has always been a challenge.