Asian Development Bank (ADB) has approved a credit line of Rs 1,000 crore for a bunch of power projects in Uttar Pradesh.
These projects would be undertaken by state power utility UP Power Corporation Limited (UPPCL).
According to the Corporation, the ADB funds would primarily be used to cut down on the massive line losses in the transmission and distribution of electricity across the state.
This would include installation of aerial bunch conductors (ABC) and adhering to the environmental norms in the power generation sector, especially thermal power.
Meanwhile, the officials of the two bodies held a meeting in Lucknow recently to finalise the contours of the agreement.
Besides, the money would be invested in tasks such as reducing transformer damage, asset management, boosting green energy production, utilising IT tools for power management, improving revenues etc.
The UPPCL is bogged down by not only line losses but also tepid revenue collection, which results in big ticket losses.
Interestingly, the Corporation has accumulated losses of nearly Rs 70,000 crore.
The Yogi Adityanath government in UP is taking multipronged steps to improve the state power sector health and gradually adopt the green energy roadmap.