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Uttar Pradesh finance dept, power corporation officials meet to work out formula for aid
The latest developments come after a high-level meeting convened by chief minister Yogi Adityanath on June 26 to review the financial status of UPPCL and its discoms
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The state’s finance department on Monday had a meeting with UP Power Corporation Ltd (UPPCL) officials to work out some formula to arrange ₹18,000 crore government financial assistance, as sought by the corporation, to bridge its cash gap during the current financial year.
UPPCL chairman M Devraj, who held deliberations with the top finance department officials, also met chief secretary Rajendra Kumar Tiwari later in the day to discuss the issue of the financial assistance to the cash-strapped corporation.
Monday’s developments followed the high-level meeting convened by chief minister Yogi Adityanath here on Saturday (June 26) to review the financial status of UPPCL and its discoms. The UPPCL officials, during the meeting, said the corporation needed a financial assistance of ₹18,000 crore from the state government, and ₹12,000 crore of it urgently, to meet cash requirements for payment of dues to power generating companies, coal companies etc.
“UPPCL officials have held a meeting with the finance department to discuss things and arrive at a solution,” additional chief secretary (energy) Alok Sinha said, adding, “But it may require a few more rounds of meetings to take a final decision.”
Devraj said discussions were being held at the government level to find out a way to help UPPCL/discoms. He, however, declined to share details discussed in the meetings with the finance department and the chief secretary, saying, “it is too premature to share.”
The officials, who are in the know of things, said the government had no option but to oblige the UPPCL to maintain smooth power supply in the election year.
“The only thing that is to be finalised is how to arrange funds and in which shape (it is) to be given to it (UPPCL),” they said.
The government, according to officials, might consider issuing state bonds worth ₹12,000 crore to help UPPCL meet the capital requirement partially while the dues pending against government departments could be adjusted against the government loan of around ₹500 crore.
“The government may have to provide the rest of the assistance in cash,” they said.
