UP lines up power reforms

Written by Deepa Jainani | Lucknow | Updated: Jan 17 2013, 08:30am hrs
The bleeding UP power sector has taken Centre's shape up or ship out advisory rather seriously.

In order to avail of the Centre's financial restructuring package, the UP Power Corporation has prepared a proposal for reforms that will be unleashed in the next few months.

The proposal, which will be sent to the state cabinet for its approval next week, talks of ushering in privatisation in the distribution sector, along with commitment to increasing tariff every year. The Centre has already given UP an in-priciple approval for R30,000 crore financial restructuring plan over a period of 10 years by a consortium of 21 banks. The banks will provide a staggered loan of R30,000 crore over the next three years to help the ailing power sector come out of the red.