Uttar Pradesh all set to ride the power wave in the next few years - Government plans to add 20,000 MW by 12th Plan period

Uttar Pradesh is all set to ride the power wave in the next few years. The Mayawati government has been able to achieve a complete turnaround for the sickly power sector in the state. Thanks to a multi-pronged strategy of launching a much-criticised MoU signing blitzkrieg, with both the private and state sectors and through the competitive bidding process and even through procurement of power, the state government has signed contracts for capacity addition of almost 20,000 mw power in the current year.

The use of this combination is part of the state government’s plan to achieve 25,000 mw power by the end of the 12th plan period. So, from the present shortfall of roughly 2000-2500 mw daily, where most of the districts go without power for around 6-12 hours, UP is preparing to become a power surplus state with 24 hours electricity.

In fact, in order to beat the recent Group of Minister’s (GoM) decision to completely shift to the tariff-based competitive bidding regime instead of the MoU route by January 5, 2011, the state government is in the final stages of tying up the agreements for a couple of more MoUs with some big names in the power sector. While there are many who think that the MoU signing spree is a stunt for garnering political dividend for Mayawati in the forthcoming 2012 elections, it is a fact that by a deft combination of some out-of-box ideas with the private developers as well as with government agencies such as NTPC and Neyvelli Lignite, the present Uttar Pradesh government has been able to get what the state lacked the most and which had slowly started eating into its growth plans.

In fact, many are of the view that even if the state is able to see an addition of 5,000 mw power during the current Plan and another 20,000 mw by the 12th Plan, it will be no less an achievement given the fact that there has been almost no capacity addition in the last two decades.

Speaking to FE, the chairman of Uttar Pradesh Power Corporation Limited (UPPCL), Navneet Sehgal said, “Since electricity is critical for not only setting up industries but also for developing infrastructure, agricultural growth as well as for other social indicators, UP has embarked upon a plan to generate power so as to match the national figures in a time-bound manner.