UERC clears Rs 422.59 crore UPCL RDSS works, flags lapses

The Uttarakhand Electricity Regulatory Commission (UERC) has granted post facto approval for capital investment of Rs 422.59 crore to Uttarakhand Power Corporation Limited (UPCL) for additional projects under the Revamped Distribution Sector Scheme (RDSS). In its order dated April 7, 2026, the Commission approved six work packages but flagged procedural lapses and raised technical concerns over electrification works in high altitude border areas.

UERC noted that UPCL initiated tendering and, in several cases, executed or substantially progressed works before obtaining approval required under Regulation 22(4) of the UERC (MYT) Regulations, 2024. The Commission termed the approach deficient, pointing to the absence of clear Board of Directors approval with defined project costs. It nonetheless allowed post facto approval, citing the 90% grant component under RDSS and the need to avoid burdening consumers.

The approved scope includes Rs 54.80 crore for 25,777 smart meters across consumer, distribution transformer, and feeder levels, and Rs 20.19 crore for auxiliary LT cables linked to distribution transformer metering. UERC directed UPCL to maintain full metering coverage of transformers and feeders, stating that gaps in upkeep would weaken system benefits.

A major portion of the investment, Rs 327.51 crore, is allocated to extend distribution infrastructure to 43 Border Out Posts and to electrify households under the Vibrant Village Programme, with an additional Rs 12.89 crore provision. These works cover districts including Uttarkashi, Chamoli, and Pithoragarh. While recognising the strategic importance, UERC recorded dissatisfaction with the absence of detailed estimates and reliance on post tender price discovery rather than a comprehensive Detailed Project Report. It also noted unresolved issues related to forest clearances and land acquisition.

On technical design, the Commission highlighted risks associated with long 11 kV radial lines in mountainous terrain. It directed UPCL to reassess network planning, including upgrading conductor sizes and incorporating N-1 contingency provisions to limit voltage drops and technical losses. It also indicated that decentralised solutions such as micro grids could have been evaluated, though central policy supports grid extension in these areas.

The approval also covers electrification of 669 Particularly Vulnerable Tribal Group households at Rs 0.59 crore and 226 beneficiaries under the Dharti Aaba Janjatiya Gram Utkarsh Abhiyan at Rs 0.90 crore. UERC described these as essential social sector interventions.

The Commission cautioned that any cost overruns beyond the sanctioned RDSS grant will not qualify for central support and should not be passed on to consumers. UPCL has been directed to seek additional funding support from central or state authorities to manage overruns and high maintenance costs in snowbound regions.

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