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Uttar Pradesh government all set to adopt DBFOO model to buy cheaper power
The Statesman Bhubaneswar
|May 07, 2025
In a significant step toward energy self-reliance, the Uttar Pradesh government approved purchase of 1,500 MW power from a 1,600 MW thermal project through a 25-year bid under the DBFOO (Design, Build, Finance, Own, Operate) model.
Awarded to the lowest bidder at Rs 5.38 per unit, the deal is expected to save UPPCL around Rs 2,958 crore.
Power supply is set to begin by 2030-31 at a competitive rate of Rs 6.10/unit—significantly cheaper than current thermal sources charging Rs 6.60 to Rs 9/unit.
The DBFOO project was approved in a Cabinet meeting chaired by Chief Minister Yogi Adityanath here on Tuesday.
According to officials this project is expected to begin supplying power by the financial year 2030-31. It offers electricity significantly lower cost than many of the state's existing and upcoming thermal power projects.
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