UPPCL proposes five new discoms to restructure Varanasi and Agra power networks
“This restructuring will also open doors for multiple private investors, fostering a competitive environment and eliminating monopoly fears,” a UPPCL spokesperson stated.
The Uttar Pradesh Power Corporation Limited (UPPCL) has proposed restructuring its power network by splitting the Purvanchal (Varanasi) Discom (distribution company) into three entities and the Dakshinanchal (Agra) Discom into two. The move would lead to the creation of five new power distribution companies.
Each of the new Discoms will cater to 30-35 lakh consumers, ensuring an equitable distribution of administrative and operational responsibilities, according to a UPPCL spokesman. The boundaries of these companies will integrate both urban and rural areas, with a focus on administrative ease and employee convenience.
“This restructuring will also open doors for multiple private investors, fostering a competitive environment and eliminating monopoly fears,” a UPPCL spokesperson stated.
Addressing employee concerns, UPPCL assured that salaries, pensions, promotions, and service conditions would remain intact post-restructuring. Contracts with private partners will explicitly safeguard these rights. Employees will have options to retain their current roles, transition to other Discoms, or opt for a voluntary retirement scheme (VRS).
In addition, senior officials will be appointed as chairpersons of the new Discoms to ensure the protection of employees, farmers, and consumers, and to uphold the government’s commitments during the transition.
UPPCL clarified that the initiative involves partnerships with private entities but does not equate to privatisation. The reforms will primarily target regions with poor financial performance, while well-performing areas—improved through employee efforts—will be excluded from the process.
The reforms are expected to improve service delivery and foster a competitive market for power distribution across the state. “This restructuring aims to strengthen the state’s power network and ensure better services for consumers,” the spokesperson added.
