The Uttar Pradesh cabinet has approved the signing of a power purchase agreement (PPA) between Uttar Pradesh Power Corporation Limited (UPPCL) and a private developer for the procurement of 1,500 MW of thermal power at a tariff of Rs 5.38 per unit.
The contract, awarded through competitive bidding, will span 25 years and is expected to commence supply from 2030–31. According to the state government, this move will result in estimated savings of Rs 29.58 billion for UPPCL over the contract duration. The project is aimed at meeting the state’s rising power demand at lower costs, compared to existing and upcoming thermal projects.