Report of Indian Institute of Public Administration ... - Ministry of Power

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
adequate power in the system to cater to the increased demand in the State from the
newly electrified rural areas.
It is, however, heartening to note that plans are afoot to install new generation capacity in
the State to remedy the prevailing dismal situation of demand-supply deficit. Coal-based
Anpara-C Power Project (1,000 MW) has been awarded to M/s LANCO Power on the
basis of competitive bidding. M/s Reliance Energy Limited has also proposed a gasbased
station at Dadri in excess of 3,500 MW with major share to Uttar Pradesh. The
State is also slated to receive its part-share from the Tehri Hydel station being developed
in the joint sector. However, the new capacities in the State would only be realised
towards the end of the Eleventh Plan and the State is likely to face considerable strain in
supply till that period. The State also needs to ensure that the proposed capacity additions
get off the ground to the implementation stage at the earliest possible.
POWER SECTOR REFORM PROGRAMME OF THE STATE
The Government of Uttar Pradesh undertook to reform its power sector with a view to
providing commercial viability and quality power to its citizens at affordable rates. The
State Government declared its Energy Policy in the year 1994 wherein the major
emphasis was on inviting private sector participation in the generation sector. The
revised Energy Policy was announced in 1999 with a clear road map for restructuring the
power sector in the State. In this framework, the State Government notified the `UP
Power Sector Reform Act, 1999’.
The mission statement of Uttar Pradesh Power Sector restructuring programme included
the following objectives:
• Electricity to be supplied under the most efficient conditions in terms of cost and
quality to support economic development of the State;
• Power sector to cease to be a burden on the State's budget and eventually become a
net generator of financial resources; and
• Protection of interest of the consumers.
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