February 26, 2013

Uttar Pradesh government said that UP Power Corporation is incurring a loss of Rs 31,000 crore and situation has arisen due to faulty policies of the previous government. On question of commission taken in purchase of transformers to the tune of 25% by Singh, the Chief Minister said his government would ensure that good quality transformers should be purchased and if needed third party verification would also be made in this regard.

On ways to deal with the financial crunch, Yadav said power distribution companies will prepare a financial re-organisation scheme with the consent of banks and would be approved by the state government. Also, the state government would either convert its Rs 1,719 crore loan to corporation as its contribution or the duration of loan repayment would be increased, he said. The state government would also work to minimise line losses, hike power tariff, he said, adding that emphasis is on to make power supply and average realisation per unit at par in next five years.