Noida Power Sector Faces Rs 317 Crore Debt as Recovery Efforts Struggle
Noida’s power sector is grappling with a massive outstanding debt of Rs 317 crore as around 90% of consumers have yet to clear their dues. Despite the launch of the One-Time Settlement (OTS) scheme by Uttar Pradesh Power Corporation Limited (UPPCL) to ease the repayment process, the recovery rate has been dismal. With the deadline for the scheme fast approaching, the local power department is pushing for stricter enforcement and immediate recovery efforts to tackle this growing financial burden.
The OTS scheme, which was introduced in phases from December 2024 to January 2025, was designed to help consumers settle their electricity bills at discounted rates. The first phase of the programme offered a 100% waiver on surcharge for timely payment, with subsequent phases providing lesser discounts. By the end of the first phase on December 31, only 13,500 consumers had taken advantage of the scheme, clearing just Rs 30.40 crore of the total Rs 347 crore owed. This leaves over 1.17 lakh defaulters yet to pay, with a collective outstanding amount of Rs 317 crore. This low uptake has prompted officials to ramp up their efforts to enforce stricter penalties and push for greater participation in the scheme. Harish Bansal, Chief Zonal Engineer of Noida’s power department, stated that power connections would be disconnected for large defaulters if they fail to clear their dues. Additionally, the department plans to set up recovery camps to make it easier for consumers to pay their arrears before the end of the month.
Despite the challenges, the power department remains committed to the implementation of the OTS scheme, hoping to recoup the outstanding payments and ease the financial strain on the power utility. Officials have also called for the greater involvement of local public representatives in raising awareness about the scheme and its benefits. A significant portion of Noida’s consumers, particularly farmers and domestic users, stand to benefit from this initiative, with substantial discounts on pending dues if paid in full. The situation highlights the ongoing infrastructural challenges faced by Noida’s power distribution system. The district’s electricity department has been struggling to recover arrears, even as it tries to balance modernisation and maintenance with the financial demands of large-scale infrastructure improvements. In a meeting with the technical team, Bansal directed that all necessary preparations be made for the upcoming summer, with special attention given to upgrading infrastructure, trimming overgrown trees, and carrying out essential repairs.
Noida is also facing broader challenges in its power infrastructure as the city expands. Power outages and inefficient supply systems are becoming increasingly common in certain parts of the city, particularly in areas that have not seen significant upgrades in recent years. The department is under pressure to not only collect dues but also to ensure that the electricity supply remains consistent and reliable. The OTS scheme offers a temporary solution to the outstanding arrears, but Noida’s power department must also invest in long-term improvements to ensure its financial viability and to meet the growing demands of a rapidly expanding city. As the deadline for the scheme approaches, officials are hopeful that these efforts will help reduce the backlog of dues, ensuring that the department can continue to invest in crucial infrastructure upgrades. For Noida’s residents, the outcome of this recovery drive is critical. While the city continues to modernise and expand its infrastructure, timely payment of dues by consumers is essential to maintain and improve the power supply, paving the way for a more sustainable urban environment.
