Electricity bill subsidy to bring revenue for UP govt News Air Insight

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The Uttar Pradesh government is expected to generate additional funds by offering power subsidy to consumers in order to clear over dues of up to 450 crore in Noida zone, through the newly launched Bijli Bill Rahat Yojana 2025 .

Discom officials said the rural belt alone contributes a substantial majority of the outstanding amount (File photo)
Discom officials said the rural belt alone contributes a substantial majority of the outstanding amount (File photo)

The new scheme — offering full surcharge waiver and graded rebates on principal dues — was announced on Thursday, following which the Paschimanchal Vidyut Vitran Nigam Limited (PVVNL) Noida zone released a report showing the scale of beneficiaries in Noida, Greater Noida and rural pockets of Gautam Budh Nagar.

According to PVVNL, domestic consumers under the LMV-1 category account for the largest share of pending dues. The zone has 69,201 “long unpaid” domestic connections, including 4,424 in urban areas and 64,777 in rural areas, with total arrears amounting to 368.7 crore. In addition, there are 10,089 “never paid” domestic connections — 242 urban and 9,847 rural — collectively owing 81.22 crore.

LMV-1 refers to domestic electricity consumers, households with a connected load of up to 2 kW while LMV-2 covers small commercial users such as shops and offices with a load of up to 1 kW. These tariff categories help the distribution company classify consumers and calculate bills according to their usage type.

Secondly, 1,002 “long-unpaid” LMV-2 connections carrying dues of 3.09 crore, and 94 “never paid” commercial connections together are responsible for 0.39 crore.

Discom officials said the rural belt alone contributes a substantial majority of the outstanding amount.

PVVNL Noida zone chief engineer Sanjay Kumar Jain said the scheme is expected to significantly improve revenue recovery and give relief to households that have been unable to clear dues for years. “We have nearly 80,000 domestic consumers eligible under the scheme. The majority of arrears are from rural areas, and this relief will offer them a practical opportunity to settle long-pending dues,” Jain said, adding that all sub-division offices have been directed to provide full assistance to eligible consumers starting December.

While announcing the scheme, urban development and energy minister AK Sharma said the government aims to ensure that no household in the state remains burdened by electricity debt. “Our effort is to give every consumer a fair and transparent system to clear arrears. Those who pay in a single instalment will receive a 100% waiver on surcharge and up to 25% rebate on the principal amount,” he said.

The relief will be offered in three slabs depending on when the consumer registers: 25% for registrations between December 1 and December 31, 2025; 20% from January 1 to January 31, 2026; and 15% from February 1 to February 28, 2026.

The government has also extended relief to certain electricity-theft assessments arising from technical faults, meter discrepancies or communication errors, subject to payment of either 2,000 or 10% of the assessed amount – whichever is higher. For those unable to make a lump-sum payment, the scheme allows monthly instalments of 500 or 750, which will be added to the consumer’s regular bill. Officials said this model is expected to help low-income and middle-income households who struggle to clear large arrears at one go.

About the registration process, the minister said that consumers will be able to register through the UPPCL website, local division and subdivision offices, Jan Seva Kendras and departmental cash counters. Discom officials expect a significant jump in registrations once the process begins in December.

“This is not just a waiver scheme, it is an effort to restore transparency and give consumers a clean slate. We expect a positive response across Noida and Greater Noida once the registration window opens,” Jain said.



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