Dedicated ₹3,000 cr fund to prevent summer power cuts

The state’s budget for the energy sector stands at ₹61,070.91 crore, out of which ₹4,086.87 crore has been set aside for new projects.

: To prevent power cuts during the summer, the Uttar Pradesh government has made a special budgetary provision, ensuring uninterrupted electricity supply across the rural and urban areas.

A dedicated fund of ₹3,000 crore has been allocated for the April to September period, primarily for additional power purchases and immediate crisis management. (Deepak Gupta/HT)

A dedicated fund of ₹3,000 crore has been allocated for the April to September period, primarily for additional power purchases and immediate crisis management. Last year, the government earmarked ₹2,000 crore for summer power arrangements.

The state’s budget for the energy sector stands at ₹61,070.91 crore, out of which ₹4,086.87 crore has been set aside for new projects.

However, finance minister Suresh Khanna’s budget speech had no mention of power supply purchase allocations, drawing criticism.

“The allocation in the budget for 2025-26 is 22% for infrastructure development, 13% for education, 11% for agriculture, 6% for medical whereas the there is only negligible allocation for energy, the key sector,” All-India Power Engineer’s’ Federation chairman Shailendra Dubey said earlier in the day about the lack of mention of the power purchase allocations.

UP Rajya Vidyut Upbhokta Parishad chairman Awadhesh Kumar Verma asserted, “As already indicated by energy minister AK Sharma’s speech in the Assembly on Wednesday, the government has decided to leave the dream of 24x7 power to the private players that it has decided to rope in.”

KEY ALLOCATIONS IN ENERGY SECTOR

₹50 crore for Pump Storage Power Projects at Rihand and Obra hydropower plants.

₹150 crore for a 500 MW solar power plant in Jalaun, a joint venture between Coal India Limited and UP Rajya Vidyut Utpadan Nigam Limited.

₹80 crore for a 2,400 MW solar energy plant in Garotha, Jhansi, in partnership with NTPC Green Energy Limited.

₹456.84 crore for domestic electrification and feeder separation under the Revamped Distribution Sector Scheme (RDSS), with an additional ₹250 crore earmarked for GST payments related to these projects.

₹100 crore to remove high-tension and low-tension power lines passing over schools.

₹1 lakh (token allocation) for the development of coal blocks obtained through auctions.

₹1 lakh (token allocation) for renewable energy development by UP Rajya Vidyut Utpadan Nigam Limited.

₹1 lakh (token allocation) for Green Energy Corridor-3 projects