CRISIL

Ashish Goyal, who recently returned to the state after a stint at the centre, has been named as the new CMD of the Uttar Pradesh Power Corporation Limited (UPPCL)

Ashish Goyal Gets Charge As CMD UPPCL

The Uttar Pradesh Power Corporation Limited (UPPCL) is preparing to privatise electricity distribution in the state, aiming to address the persistent financial losses faced by its power distribution companies. The decision was finalised during a high-level meeting held on Monday, which included UPPCL Chairman and the Managing Directors of the state's distribution companies. Under the proposed privatisation model, a 50-50 partnership will be implemented. The chairmen of the distribution companies will be a government-appointed official, likely an IAS officer, while the managing director will be a private-sector appointee. The Odisha private sector model is being studied as a blueprint for this transition. It was decided that private sector participation would be introduced in regions with major fiscal deficits. The objective is to revive the ailing power distribution companies, which are currently burdened with a cumulative loss of Rs 1.1 lakh crore. Discussions have already been initiated with two major industrial conglomerates in the country for this purpose.

UP Power Sector: Plans Underway To Privatise Loss-Making Electricity Distribution Companies

December 1 (Monday), the Uttar Pradesh Power Corporation Ltd (UPPCL) will roll out the ‘Bijli Bill Rahat Yojana’ (Electricity Bill Relief Scheme) offering for the first time a 100% waiver on surcharge and interest, along with significant relief on principal dues for domestic (LMV-1 up to 2 kW) and small commercial (LMV-2 up to 1 kW) consumers. LMV stands for low medium voltage.

Bijli Bill Rahat Yojana brought by UPPCL offers 100% waiver on surcharge, interest, option to pay in small, easy instalments

Uttar Pradesh faces challenges from weak demographics, low per-capita income, and a high contribution from the primary sector. It has the fourth-highest population density and low literacy/urbanization, requiring significant long-term social spending.


The state's Total Debt plus Guarantee to GSDP is projected to decrease to 35%-36% in FY25 (down from 45.4% in FY21) due to strong revenue surplus, though indebtedness remains high. The Gross Fiscal Deficit to GSDP is expected to decline to 2%-2.3% in FY25. This is aided by the surplus and a modest growth in capital outlay.

Uttar Pradesh lags in power reforms (missed UDAY targets), with high AT&C losses estimated at 24.85% (FY25). The ACS-ARR gap has narrowed significantly  due to more renewables. However, collection efficiency is low due to rural exposure, requiring increasing state subsidies.


The issuer has made timely interest payments.

IAS,Ashish Kumar Goel,Chairman 

The bond's security relies on a three-fold credit structure: an unconditional and irrevocable guarantee by the Government of UP (GoUP), a trustee-administered escrow and payment mechanism, and adequate liquidity (DSRA and trapped subsidy receipts).



The Rs 7,439.2 crore (2022 Series) bond is serviced by a Rs 8.4 crore daily electricity receivables escrow and quarterly GoUP budgetary funding. This funding, received between T-45 and T-15 days, ensures the full debt is met. Additional security includes a two-quarter DSRA and the ability to trap Rs 600 crore from agriculture/irrigation collections as a backup.


Uttar Pradesh is a top five GSDP state with consistent revenue surplus (since FY07), largely driven by its 17.9% share in Central Tax Devolution (CTD) (over 40% of revenue) and healthy tax buoyancy. Surplus is projected through FY25.


Rating agency	Rating	Needle position
CRISIL	A+ (CE) Stable	between Medium and High Safety
IND	A+ (CE) Stable	between Medium and High Safety

Security Name: 9.70% UP Power Corporation Limited 29 Mar 2030

ISIN: INE540P07418

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