India

UP Government Moves Ahead With Discom Privatisation To Boost Power Sector Efficiency

The Uttar Pradesh government has approved the privatisation of two major power distribution companies (DISCOMs), marking a historic shift in the state’s electricity sector.

Chief Minister Yogi Adityanath has cleared the proposal, and the Energy Department has instructed UP Power Corporation Limited to implement it.

This move will impact over 40 districts and lay the foundation for a new service-oriented work culture.

Despite opposition from employee unions and political parties, the government has assured that the interests of existing employees will be protected.

The workers will be integrated into the new system without loss of service or rights.

Boost For Rural & Semi-Urban Electrification

The biggest gains from privatisation are expected in rural and semi-urban areas, where the electricity supply is often unreliable.

The entry of private firms is likely to improve grievance redressal, build public trust, and modernise services.

Poor service quality and weak accountability have plagued these regions for decades. This decision aims to transform that scenario permanently.

Tackling Financial Losses & Technical Inefficiency

UP’s government-run discoms have long faced financial strain due to high AT&C losses and poor revenue recovery.

These problems hurt both the state economy and consumer satisfaction.

Delhi’s discom model offers a successful example. After its 2002 privatisation, Delhi’s AT&C losses dropped from nearly 57% to below 7%.

In contrast, the national average remains above 15%. Private companies bring efficiency, accountability, and a customer-first approach to billing, metering, and collections.

A Necessary Step; Not Just A Reform

The government sees privatisation not as a short-term fix, but as a structural change.

Cities like Delhi, Mumbai, Ahmedabad, and Bhubaneswar have already shown how private discoms can reduce theft, improve service, and raise satisfaction levels.

UP plans to replicate these reforms through smart metering, grid modernisation, and employee training.

The goal is not just efficiency, but also social equity through better and fairer access to electricity.

This bold decision prioritises long-term public interest over political concerns. It reflects a shift towards energy as a right, not just a service.

The change signals the beginning of a stable, modern, and consumer-driven power sector in Uttar Pradesh.

Also Read: Maharashtra: CM Fadnavis Orders Blackout Drills And Cyber Audits Amid India-Pakistan Tension

Bharat Express English

Recent Posts

CM Yogi Visits Veteran BJP MLA Fateh Bahadur Singh After Accident On Expressway

MLA from Campierganj, Gorakhpur, and former minister Fateh Bahadur Singh is undergoing treatment at KK…

3 mins ago

Evacuees Praise Government’s Efforts As Operation Sindhu Brings Indians Home From Iran

India has successfully evacuated more than 2,500 citizens from conflict-hit Iran under Operation Sindhu, with…

59 mins ago

Walmart Aims To Source $10 Billion Annually From India, Says Global CEO Doug McMillon

Walmart’s global CEO and president Doug McMillon on Tuesday (June 24, 2025) reaffirmed the company’s…

1 hour ago

S&P Global Raises India’s GDP Growth Forecast To 6.5% For FY26

S&P Global on Tuesday raised India’s GDP growth forecast for the current financial year to…

2 hours ago

GoI Eases GFR Norms To Boost Research; Procurement Without Quotation Limit Raised To Rs 2 Lakh

The Government has doubled the no-quotation purchase limit to ₹2 lakh, easing GFR norms for…

2 hours ago

HAL To Deliver Six Tejas Mk-1A Jets To IAF By March 2026 Amid Engine Supply Delays

The Indian Air Force will get six Tejas Mk-1A jets by March 2026, HAL CMD…

2 hours ago