Uttar Pradesh government has proposed an outlay of Rs 659.26 billion for the energy sector in budget 2026–27 marking an increase of about 8 per cent over the previous year.
The allocation includes Rs 201.03 billion in capital expenditure and Rs 382.57 billion in revenue expenditure to support infrastructure expansion and operational requirements across generation, transmission and distribution. The budget earmarks Rs 41.55 billion for smart metering under a dedicated head to expand prepaid and advanced metering infrastructure deployments statewide. Provisions have also been made for works under the revamped distribution sector scheme including Rs 29.21 billion for loss reduction, Rs 16.50 billion for information technology and operational technology modernisation and Rs 10.45 billion for electrification and feeder segregation. Further allocations include Rs 40 billion for strengthening the distribution network under Uttar Pradesh Power Corporation Limited and Rs 5.83 billion for priority transmission schemes. An outlay of Rs 35 billion has been proposed to ensure reliable summer power supply while about Rs 21.04 billion has been allocated for additional clean energy initiatives under the state’s solar, bio-energy and green hydrogen policies, which target 22,000 MW over five years.