Lucknow: Following no hike in power tariffs and high pilferage rate, the Uttar Pradesh Power Corporation Limited (UPPCL) is constantly slipping under debt. The state power corporation is already under a debt to the tune of Rs 9, 000 crore.

Since the Bahujan Samaj Party government is leaving no stone unturned in their efforts to evolve a positive image before upcoming Assembly elections, the state government has decided to provide Rs 6, 000 crore to the Corporation under revolving guarantee.

Notably, the state government mounted further pressure on the already cash strapped UPPCL, asking it to provide uninterrupted supply in cities and 14-hour power to villages. Earlier, UPPCL barely provided 8-hour power supply in villages.

Furthermore, the Corporation is also facing crisis in buying power and making payments as no financial institutions are ready to extend loan to it.

In order to provide uninterrupted supply to citizens of the state, the State Power Corporation has again asked the UP government for loan guarantee.

It should be recalled that the corporation has already taken Rs 9, 000 crore loan on government’s guarantee and nearly Rs 2000 crore are spent every year for loan payment. Apart from this, for paying salaries also, the corporation needs Rs 1,800 crore every year.

According UPPCL Director (Finance) S K Agarwal, to provide uninterrupted supply, an additional 10, 000 million unit of power is required. “To purchase 65, 000 MU power, the corporation needs Rs 22, 000 crore,” added Agrawal.

When asked about Corporation’s debt, he said, “The cost per unit is coming out to be Rs 5.40 whereas we are receiving Rs 2.90 per unit.”

One of the major reasons behind the debt is major power theft of around Rs 2.50 crore and no increase in power tariff.

Against the proposed 29 percent hike in power rates only 12 percent prices were raised last year. In the ongoing year, the rates are yet to be increased.

JPN/Bureau