"Yes... UP Power Corporation is suffering losses. It's around Rs 31,000 crores", Chief Minister Akhilesh Yadav said in reply to a question raised by BJP member Hukum Singh.
He said that the situation has arisen due to faulty policies of the previous government, which had not taken right decision for this sector.
"The SP government is trying to improve the situation by taking right decisions and its impact will be visible in the days to come", he said.
On question of commission taken in purchase of transformers to the tune of 25 per cent by Singh, the Chief Minister said his government would ensure that good quality transformers should be purchased and if needed third party verification would also be made in this regard.
"It has come to my notice that poor quality transformers were purchased. In Gorakhpur alone 1,200 transformers stopped working in a day but now such things will not happen," he added.
On ways to deal with the financial crunch, Yadav said power distribution companies will prepare a financial reorganisation scheme with the consent of banks and would be approved by the state government.
Also, the state government would either convert its Rs 1,719 crore loan to corporation as its contribution or the duration of loan repayment would be increased, he said.
The state government would also work to minimise line losses, hike power tariff, he said, adding that emphasis is on to make power supply and average realisation per unit at par in next five years.