The Uttar Pradesh Power Corporation Limited has paid Rs 5,250 crore, which is half of the outstanding dues to sugar mills with co-generators in the state, for 2019-20.
The dues were cleared after the power distribution company received money from Power Finance Corporation Limited and Rural Electrification Corporation Limited, both Central PSUs.
As part of an economic package announced by Prime Minister Narendra Modi in May to mitigate the impact of the COVID-19 pandemic, PFC and REC would together extend credit of Rs 9,000 crore to power distribution companies, enabling them to clear the dues.
Apart from producing sugar, some private sugar mills in the country’s largest sugar producing state also co-generate electricity for their captive use and sell the surplus electricity to UPPCL at fixed tariff.
