UTTAR PRADESH POWER SECTOR RESTRUCTURING PROJECT

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The Uttar Pradesh Power Sector Restructuring Project aims to bring about a permanent shift in public expenditure from the power sector to the social sectors and other high priority areas for public investments. The development objectives are to support the initiation of the power sector reform process by establishing a new legal and regulatory and institutional framework, create new power corporations, prepare for privatization of the distribution business, reduce the most critical in the power system to improve the supply and establish the benefits, and to build and develop support among key stakeholders in the state. There are five project components. The first funds transmission system rehabilitation and capacity augmentation through identified sub-projects such as substations and replacement equipment. The second component finances a distribution system improvement scheme. The third component improves the metering system. The fourth component provides technical assistance to implement sector restructuring, reform the regulatory and legal framework, to finance power purchase agreements, and to improve communications. Lastly, the fifth component helps develop a voluntary retirement scheme.