Reforms Drive UP Power Corp's Biz Agenda

Smart metering, steps to plug pilferage and attempts to recover dues drive revenues at UPPCL.

- ASHUTOSH KUMAR

#34 SECOND BIGGEST LOSS-MAKING

UPPCL

RARELY DOES A COMPANY logging the highest topline in a sector have to cut a sorry figure about profitability. That is the case with Uttar Pradesh Power Corporation Ltd. (UPPCL), a power distribution company, which features in Fortune 500 India for the first time on the back of ₹90,272 crore revenues, including subsidies, in FY23.

UPPCL has six divisional distribution companies under its foldDakshinanchal Vidyut Vitaran Nigam, Madhyanchal Vidyut Vitaran Nigam, Pashchimanchal Vidyut Vitaran Nigam, Purvanchal Vidyut Vitaran Nigam, Lucknow Electricity Supply Administration and Kanpur Electricity Supply Administration, along with Uttar Pradesh Power Transmission Corporation, a state transmission utility. The parent procures power from government-owned power generators, Uttar Pradesh Jal Vidyut Nigam, central power generator NTPC and independent power producers.

However, despite the impressive revenue numbers, the company is facing colossal losses. This speaks volumes about the state of power generation and distribution companies in the country, which operate amid massive transmission & distribution (T&D) losses, huge dues and little or no pricing power. UPPCL's total income rose 12.3% to ₹90,272 crore in FY23 from ₹80,332.67 crore in FY22 and 33.5% from ₹67,615 crore in FY21.

This makes it one of the highest revenue earners in the industry. UPPCL Chairman Ashish Kumar Goel says several factors have contributed to strong revenue growth, including expansion of customer base, initiatives such as installation of smart meters and a number of one-time settlement schemes for collection of dues.