Budget 2026-27 proposes nearly 8% higher outlay for Energy Sector schemes compared to last year
Strengthened rural and urban power supply, double focus on green energy, 22,000 MW target set
Lucknow: Presenting the budget for the financial year 2026-27, Finance Minister Suresh Khanna stated, “Yogi government is taking concrete steps to make Uttar Pradesh a leading state in energy generation, distribution and green energy. The budget proposed an allocation of ₹65,926 crore for energy sector schemes, which is nearly 8% higher than in 2025-26.”
According to the government, by December 2025 the average power supply is being ensured at 19 hours in rural areas, 21 hours and 49 minutes at tehsil headquarters and 24 hours at district headquarters. These figures reflect significant progress in the power supply sector. From April 1, 2022, to December 2025, a total of 2,41,088 private tube well connections have been released.
Under the general scheme, 1,66,135 tubewell connections have been provided since 2017-18. Under the separate feeder construction scheme for agricultural purposes, 4,048 agricultural feeders have been constructed against a target of 4,680, providing 10 hours of power supply, reported to be the highest in the country.
From April 1, 2022, to 2025-26, construction and capacity enhancement of 2,410 new 33/11 kV substations has been completed, along with the installation of 20,924 new distribution transformers and capacity augmentation of 85,684 transformers. Meanwhile, the state’s transmission capacity has increased from 17,890 MW in 2016-17 to 32,500 MW in 2025-26, reflecting an 82% growth.
The budget proposes an allocation of ₹2,104 crore for the development of additional energy sources, more than double the provision of the previous year. This reflects the government’s commitment to energy security and environmental conservation. Under the Solar Energy Policy-2022, Bio-Energy Policy-2022 and Green Hydrogen Policy-2024, a target of 22,000 MW of energy generation has been set for the next five years. So far, 2,815 MW of solar projects have been installed in the state, indicating solid progress in the green energy sector.
An allocation of ₹1,500 crore is being made to connect farmers and household consumers with solar energy, promoting rural self-reliance and energy conservation.
Ayodhya, Mathura and 17 other municipal corporations are being developed as solar cities. In rural areas, 5.20 lakh solar street lights have already been installed. Under the Bio-Energy Policy-2022, 36 CBG (Compressed Bio-Gas) plants have been set up in the state, the highest number in the country. Under the Green Hydrogen Policy-2024, the establishment of two Centres of Excellence in the state is being approved, which will promote research and industrial applications.
