UP sugar mills risk Rs 500 cr loss as regulator cuts power tariffs

Against the prevailing tariffs of Rs 6.19 to Rs 6.75 per unit for the purchase of cogenerated power supplied by mills to UPPCL, the UPERC has proposed paring the rate by around Rs 2.25 per unit

With the Uttar Pradesh energy watchdog proposing to reduce tariffs by 35% of bagasse-based power supplied to the state utility by sugar mills, the beleaguered millers are looking at taking a hit of almost Rs 500 crore annually if the proposal sails through.

Against the prevailing tariffs of Rs 6.19 to Rs 6.75 per unit for the purchase of cogenerated power supplied by mills to UP Power Corporation Limited (UPPCL), the UP Electricity Regulatory Commission (UPERC) has proposed paring the rate by around Rs 2.25 per unit, or by around 35%, for the next five years.

The new tariffs are being determined