UERC Grants Post-Facto Approval for ₹4.23 Billion RDSS Investment by Uttarakhand Power Corporation Limited

DEHRADUN: In a formal decision issued on April 15, 2026, the Uttarakhand Electricity Regulatory Commission (UERC) granted post-facto approval for an additional investment of ₹4.23 billion (₹423 crore) requested by the state utility, Uttarakhand Power Corporation Limited (UPCL). This investment is sanctioned under the central government’s Revamped Distribution Sector Scheme (RDSS), a reforms-based and results-linked initiative designed to modernize distribution infrastructure. The Commission categorized this post-facto approval as an exceptional case, noting that the utility had proceeded with certain works before obtaining the necessary prior regulatory sanctions.

Breakdown of Sanctioned Infrastructure Works

The additional ₹4.23 billion investment is directed toward several infrastructure projects intended to modernize the state’s power grid and reduce Aggregate Technical and Commercial (AT&C) losses. The sanctioned works include:

• Additional Smart Metering Initiatives: Expansion of the existing rollout to improve billing accuracy and collection efficiency across the state.
• Electrification of Tribal Households and Public Institutions: Infrastructure development specifically aimed at underserved tribal communities and essential civic facilities.
• Border Area Electrification: Works integrated with the Vibrant Villages Programme to provide strategic rural development in border regions.
• Auxiliary Cable Deployment: Specifically allocated for distribution transformer (DT) smart metering to ensure accurate energy accounting.
• Cyber Security and GIS Components: Integration of advanced security modules and Geographic Information System (GIS) infrastructure as per the regulatory order dated November 27, 2025.

Commission Directives and Regulatory Warnings

In its decision, the UERC issued a stern warning regarding the utility’s adherence to standard investment procedures. To ensure future compliance, the Commission has mandated the following:

• Mandatory Board Clearance: UPCL must obtain formal clearance from its Board of Directors prior to submitting any future investment approval petitions.
• Separate Petitions: The DISCOM is directed to file distinct and separate investment approval petitions for future works to allow for individual regulatory scrutiny.
• Warning on Compliance: The Commission explicitly warned that this post-facto approval is an exceptional measure. The UERC cautioned that regulatory action will be initiated if projects are taken up without prior regulatory approval in the future.

UPCL Financial Context and RDSS Status

UPCL’s financial health remains under scrutiny, with the utility heavily dependent on Government Budgetary Support (GBS) and interest subsidies. Under the National Electricity Fund (NEF), UPCL has had ₹741.5 million in interest subsidies approved and released as of April 12, 2024. A critical factor impacting the utility’s liquidity is the accumulation of arrears; current data indicates that the Government Sector is responsible for approximately one-third of the total pending dues, despite consuming only 6% of the state’s power.

UPCL Operational and Financial Metrics

The RDSS framework is structured as a reforms-based scheme, meaning that GBS funding is strictly contingent upon UPCL meeting specific operational and technical milestones.

Implementation Timeline and Contractor Progress

Current progress reports for ongoing RDSS works in Uttarakhand show significant advancement in digitization and metering infrastructure:

• Smart Metering: A total of 1,587,870 smart meters have been sanctioned for installation across the state.
• IT/OT Integration: Approximately 90% of the hardware supply and installation for Information Technology and Operational Technology components, including cyber security modules, has been completed.
• GIS Asset Surveys: Asset surveys have commenced in 12 circles, with 1,294 feeders already fully surveyed. To date, approximately 70% of the total survey work required for infrastructure digitization has been finished and is ready for data processing.

The total investment scope for UPCL under the RDSS framework currently reflects a revised sanction cost of ₹1099.84 crore. The April 15, 2026, order by the UERC serves as the final regulatory milestone for the post-facto approval of the ₹4.23 billion component, formalizing the financial parameters for these additional distribution works while reinforcing the requirement for prior approval in all future capital expenditures.