The Uttarakhand Electricity Regulatory Commission (UERC) has granted post-facto approval to Uttarakhand Power Corporation (UPCL) for an additional investment of ₹4.23 billion (~$45.35 million) in projects sanctioned under the Revamped Distribution Sector Scheme (RDSS).

The Commission has directed the DISCOM to furnish each investment approval petition, after clearance from the board of directors (BoD), for works to be undertaken.

It warned the DISCOM that action would be taken if it proceeded with projects without seeking the Commission’s approval.

Background

The Commission stated that the RDSS monitoring committee approved the proposal for additional sanction of smart meters under the Smart Metering Project in UPCL, with an estimated project cost of ₹548 million (~$5.88 million) and a corresponding government budgetary support (GBS) of ₹123.2 million (~$1.32 million).

UPCL told the Commission that work on the additional smart meter installations is already underway, and the total approved cost now stands at ₹11 billion (~$117.97 million). It was also granted project management agency (PMA) charges of ₹3.1 million (~$33,240.1) and a corresponding GBS of ₹2.8 million (~$30,023.3).

It stated that it executed works valued at ₹5.92 million (~$63,477.8), with corresponding GBS of ₹5.32 million (~$57,044.2) for the electrification of particularly vulnerable tribal groups under the PM-JANMAN program.

UPCL said that the RDSS Monitoring Committee approved the proposal to extend distribution infrastructure works to the border area of Uttarakhand under the electrification of border-post (BoP) works, with a revised project cost of ₹3.28 billion (~$35.18 million) and a corresponding GBS of ₹2.95 billion (~$31.64 million). Additionally, the Committee revised the PMA charges to ₹49.1 million (~$526,480), with a corresponding GBS of ₹44.2 million (~$473,939).

The DISCOM stated that it had secured approval to carry out electrification works under the Vibrant Villages Program (VVP) in eight villages, with a total project cost of ₹128.9 million (~$1.38 million) and corresponding GBS of ₹116 million (~$1.24 million). It received approval for PMA charges of ₹1.9 million (~$20,372.9) and the corresponding GBS of ₹1.7 million (~$18,228.4).

The DISCOM also received approval from the RDSS Monitoring Committee for the deployment of additional auxiliary cable for DT smart metering works in Uttarakhand, with a project cost of ₹201.9 million (~$2.17 million) and a corresponding GBS of ₹181.7 million (~$1.95 million). It also received approval for PMA charges of ₹3 million (~$32,167.8) and corresponding GBS of ₹2.7 million (~$28,951).

Approval was also secured for the electrification of un-electrified tribal households and public institutions under Dharti Aaba Janjatiya Gram Utkarsh Abhiyan, amounting to ₹9 million (~$96,503.4). The corresponding GBS for the same was ₹8.1 million (~$86,853.1).

Commission’s Analysis

Considering the high grant component and the need to complete the works within prescribed timelines, the Commission said enforcing prior approval at this stage could delay execution and increase the financial burden on consumers.

It said that distribution licensees must obtain prior approval for any capital expenditure exceeding ₹25 million (~$300,000). However, it noted that most of the proposed works had already been completed or were under execution at the time of filing.

The Commission cautioned the petitioner against bypassing the requirement of prior approval in future cases, and gave post-facto approval for additional projects under RDSS.

It directed the petitioner to ensure that all future investment petitions are submitted only after obtaining Board of Directors approval for specific works and associated costs. It warned that any repetition of such lapses could invite regulatory action under applicable provisions.

The petitioner was also instructed to adhere strictly to the timelines, technical guidelines, and best practices under RDSS.

For projects related to BoP and VVP programs, the Commission emphasized the need for detailed planning and design and advised the petitioner to explore insurance coverage for assets deployed in geographically vulnerable and harsh environments and to undertake proper site selection for substations based on detailed geophysical assessments.

To address potential voltage drops and technical losses in long 11 kV lines, particularly for BoP works, the Commission recommended upgrading conductors or implementing redundancy measures, such as N-1 line contingency, for the 11 kV network.

It said efforts must be made to enable single-point connections at BoP locations to improve metering and billing efficiency and reduce operations and maintenance costs.

The Commission ordered the petitioner to conduct factory, routine, type, and site acceptance tests for all electrical equipment in accordance with relevant Indian Standards and International Electrotechnical Commission standards. The petitioner must also ensure the use of standard-compliant low-tension cables for distribution transformer-related works.

The petitioner must submit a project schedule every month and every quarter. The Commission may conduct inspections during or after project execution to verify quality, resource utilization, and claimed benefits.

Upon completion, the petitioner must submit a detailed project completion report, including costs, financing details, and an assessment of benefits.

Since some works have already been completed or awarded before approval, the Commission said the prudence of the expenditure will be examined during the annual revenue requirement (ARR) or true-up process.

The petitioner was told to submit proof of equity funding support from the state government or other sources within one month.

The Commission stated that if the petitioner fails to comply with any of the conditions, it may revoke the approval, disallow part or all of the project expenditure during the ARR or true-up process, and initiate regulatory action.

According to the Ministry of Power, as of November 15, 2025, 47.6 million smart meters have been installed across the country under various programs, while 203.3 million meters have been approved under the RDSS based on proposals submitted by the states.