Uttar Pradesh to spend Rs 4,239 crore on 24 new power transmission projects

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved capital expenditure of Rs 4,239.50 crore for 24 transmission schemes proposed by Uttar Pradesh Power Transmission Corporation Limited (UPPTCL). The approved portfolio comprises 12 projects under the Regulated Tariff Mechanism (RTM), two under Tariff-Based Competitive Bidding (TBCB) and 10 under the Deposit mode.

The schemes were considered during the second, third and fourth quarters of FY 2025-26 by the Transmission Works Committee (TWC). Of the total approved investment, Rs 1,888.08 crore relates to RTM schemes.

RTM projects

Among the 12 RTM schemes approved by UPERC is the 765/400 kV, 4×1500 MVA Mirzapur Pooling Substation and associated bays, estimated at Rs 1,315.91 crore.

Other major projects include the upgradation of the 132/33 kV Salempur substation to 220 kV GIS level with 2×160 MVA capacity at Rs 129.06 crore; the 132/33 kV, 2×40 MVA Jhansi-II substation with associated lines at Rs 63.13 crore; the 132/33 kV, 2×40 MVA Narayanpur substation at Rs 54.75 crore; the 132/33 kV, 2×40 MVA Unchahar substation at Rs 65.04 crore; and the 132/33 kV, 2×63 MVA Suzru substation at Rs 78.82 crore.

The Commission also approved augmentation works at Noida Sector-20 substations, Noida Sector-148 and the 400/220 kV Agra substation. Another approved project involves replacing the 63 MVAR bus reactor at the 400/220/132 kV Orai substation with a 125 MVAR unit.

UPERC conducted prudence checks on the Internal Rate of Return (IRR) of each RTM project and found all of them to be above the benchmark rate of 9.15%.

TBCB projects

Two projects were approved under the TBCB route, with a combined estimated cost of Rs 1,483.56 crore.

The first is a 765 kV Bara-Mirzapur Pooling Station double-circuit line spanning 107 km, estimated at Rs 942.51 crore. The second comprises a 400 kV Mirzapur Pooling Station-Mirzapur Thermal Energy double-circuit line of 18.5 km and a 400 kV Mirzapur Pooling Station-Sahupuri double-circuit line of 68 km, estimated at Rs 541.05 crore.

Deposit works

UPERC approved 10 Deposit mode schemes with a combined cost of Rs 867.86 crore.

These include the 220/33 kV, 4×60 MVA Saraswati Hi-Tech City GIS substation in Prayagraj at Rs 238.69 crore and a 400 kV GIS switching substation for Hindalco at Rs 272.69 crore.

The approved portfolio also includes dedicated transmission lines for railway traction loads and industrial consumers in the Noida-Greater Noida region.

Sector-28 correction

The Commission also modified its earlier order dated June 22, 2026, in Petition No. 2350 of 2026, relating to the capital cost of the 400/220 kV, 3×500 MVA GIS Sector-28, YEIDA Substation.

The approved project cost has been corrected from Rs 675.53 crore to Rs 653.53 crore. UPPTCL had clarified that the increase attributable to revised Right of Way (RoW) compensation and contingency provisions was Rs 24.19 crore, rather than Rs 46.19 crore as recorded inadvertently in the earlier order.

RoW provisions

UPERC noted that the Government of Uttar Pradesh has revised RoW compensation rates. Compensation for tower base areas is now linked to 200% of the reference market value of land, while corridor compensation is set at 30%, 45% and 60% of the reference market value for rural areas, municipalities and municipal corporations, respectively.

The Project Formulation and Appraisal Division has also prescribed revised contingency norms, with a cap of Rs 50 lakh for projects costing more than Rs 100 crore.

The Commission observed that these policy changes would require corresponding revisions to project cost estimates. It therefore approved suitable provisions for accommodating increases arising from such policy changes at the execution stage.

Future planning

UPERC directed UPPTCL to file petitions immediately after Appraisal Committee approval rather than combining schemes that are awaiting ETF approval. It also directed the utility to procure equipment through fair and transparent competitive bidding and submit completion reports showing actual costs incurred for prudence checks at the time of tariff finalisation.

The Commission further directed that transmission substations in urban areas be planned close to load centres, with space reserved for future augmentation, in accordance with the Central Electricity Authority’s (CEA) revised Transmission Planning Criteria (2023). Spare transformation capacity and feeder bays are also required to be specified during TWC approvals.

Following the latest approval, the total capital expenditure approved for FY 2025-26 stands at Rs 5,299.01 crore. This comprises Rs 1,712.23 crore for new projects, Rs 739.41 crore for augmentation and system strengthening, Rs 1,138.58 crore for Deposit works and Rs 1,708.79 crore for TBCB schemes.

The approval was issued in Petition No. 2383 of 2026 by a bench comprising Chairman Arvind Kumar, Member Sanjay Kumar Singh and Member (Law) Griesh Kumar Vaish.

The featured photograph is for representation only.