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Move to merge hydro power corporation gains momentum

The move for merger of the Uttar Pradesh Hydro Power Corporation Limited  into the Uttar Pradesh Thermal Power Corporation Limited has again gained momentum a year after the board of directors of both the corporations gave their nod for the same.

The UP Thermal Power Corporation Limited, also popularly known as UP Rajya Vidyut Udpadan Nigam Limited (UPRVUNL), is said to be pressing on the need for an urgent merger on various grounds. The state government, however, is yet to take a call on the proposal.

The boards of the two corporations had in July 2011, passed proposals separately, for the merger of the hydro corporation into thermal corporation. It was argued that the hydro corporation was left with little potential for generation of power after the creation of a separate state of Uttarakhand with all water reserves.

At present this corporation with around 600 employees, has power projects with a total capacity of only 500MW.

“To have a separate corporation to handle 500MW power generation is not advisable,” the boards had pleaded.

The merger of the hydro power corporation is expected to enable the management to make the optimum utilisation of water resources in the state to produce electricity and also use water reservoirs for coal-fired power plants in a more efficient and economical manner.

“The move will also improve financial health of the UPRVUNL which has to spend crores of rupees on purchasing water from the UPJVUNL to run its thermal plants,” observed an official.

The government, however, is in two minds over the proposal.

“We do want to allow the merger but we fail to understand as to how it will make a difference,” said an official.

“Moreover, the hydro power corporation is the only power corporation that is earning profit,” he added.

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