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Uttar Pradesh

Uttar Pradesh Accelerates Thermal Power Projects

  • 18 Jun 2024
  • 1 min read

Why in News

The Uttar Pradesh government is accelerating the Ghatampur and Obra C thermal power projects to address the state’s growing energy demand.

Key Points

  • The combined capital expenditure (capex) for these projects exceeds Rs 32,000 crore.
  • The Ghatampur project (1,980 MW) is estimated to cost Rs 19,006 crore and is being developed by Neyveli Uttar Pradesh Power (NUPPL).
  • All three units of the Ghatampur project are expected to be commissioned in 2024-25, with the state receiving 75% of the production of electricity.
  • The Obra C thermal power plant (1,320 MW) had a cost overrun due to changes in prices and exchange rates.
    • The state will meet 70% of the augmented cost of Obra through borrowings, while the remaining 30% will be provided through share capital.

Capital Expenditure

  • It is incurred with the purpose of increasing assets of a durable nature or of reducing recurring liabilities.
    • Example: The expenditure incurred for constructing new schools or new hospitals. All these are classified as capital expenditure as they lead to creation of new assets.
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