The Uttarakhand Government on Thursday announced several steps to improve power scenario in the State and said it will waive Rs 435 crore loan of Uttarakhand Power Corporation Ltd (UPCL) by converting it into equity.
The Chief Minister, Vijay Bahuguna, said his Government will also 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 told reporters after chairing a review meeting of the power department.
He said there was shortage of power and the State had purchased electricity worth Rs 193 crore from April to July this year against Rs 86 crore, which was spent for the purpose during the period last year.
He said the power situation had become worse as most of the power generation plants were shut due to deposition of silt.
“That has also forced us for going for power cuts from two to four hours every day,” he said, adding, currently, industries and rural areas are facing power cut of four hours a day and urban areas of two hours a day.