In a move to bring down the accumulated losses of the Uttarakhand Power Corporation Limited (UPCL), the government has given a package of over Rs 915 crore to the sole state-run power distribution company.
The accumulated losses of the UPCL stood at Rs 1,948.22 crore till the year 2010-11, the auditing for which has been completed. The annual losses of the UPCL for the same year were Rs 204.46 crore.
During a recent review meeting of the power department, the government announced several steps to improve power-sector reforms and said it will waive off Rs 435 crore loan of the UPCL by converting it into equity.
The UPCL had got the loan from the government for building its capital infrastructure during its inception a decade ago.
The government has also decided to write off Rs 400 crore in terms of “fictitious bills” sent to the factories and other buildings, which have been closed long back. “We are going to write off this Rs 400 crore which was pending as fictitious bills,” Chief Minister Vijay Bahuguna said.
However, financial experts said though the UPCL might have brought down its line losses to 22 percent through such fictitious bills, it will have to explain the reasons during the audit process why they were being written off.
For converting the loan of Rs 435 crore into equity, the government would now hope for a good dividend which can only be achieved by earning profit, experts said.
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In yet another move, the government has also decided to waive the interest and surcharge of the unpaid bills of domestic and tubewell consumers worth Rs 230 crore. “This would cost the state exchequer by Rs 80 crore but it has been done to encourage the consumers to pay their unpaid bills and reduce the loss of UPCL,” Bahuguna said after chairing the review meeting of the power department.
Expressing concern over the power theft, Bahuguna said nearly one lakh people of the state are indulging in such activities. Nearly 40 percent of the theft is being reported from 3 cities of Haridwar, Kashipur and Rudrapur only.
In this regard, the chief minister said the power department has filed a total of 1200 FIRs in the state and tough action would be taken against those found guilty. He said the officials have also been directed to make adverse entry in the service book of employees in case they fail to check power theft in their area.