Women Empowerment in Rural UP: Lessons from Vidyut Sakhis

POLICY BRIEF

Powering Uttar Pradesh

The Vidyut Sakhi Model for Women’s Empowerment and Discom Revenue Recovery

30 June, 2026 | Power Markets

Rashi Singh, Vikrant Kumar Singh, Nitesh Kumar, Kartikeya Yadav

Suggested Citation: Singh, Rashi, Vikrant Kumar Singh, Nitesh Kumar, and Kartikeya Yadav. 2026. Powering Uttar Pradesh: The Vidyut Sakhi Model for Women’s Empowerment and Discom Revenue Recovery. New Delhi: Council on Energy, Environment and Water (CEEW)

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Overview

Reliable and affordable electricity is not just about wires, meters, and infrastructure. It also depends on whether people trust the system, understand their bills, and have easy ways to pay on time. In rural Uttar Pradesh, this has often been a challenge. Many consumers have limited access to convenient payment options, payments are irregular, and trust in billing systems remains low.

The Vidyut Sakhi programme, launched in 2020 by the Uttar Pradesh State Rural Livelihood Mission (UPSRLM) and the Uttar Pradesh Power Corporation Limited (UPPCL), responds to this last-mile challenge by placing rural women at the centre of electricity service delivery. Women from self-help groups are trained and equipped as digitally enabled doorstep bill collection agents. In doing so, the programme creates a performance-linked income opportunity for women while helping discoms improve revenue recovery and build stronger consumer relationships.

This policy brief studies the Vidyut Sakhi programme as a women-led, service-based livelihood model. Drawing on programme data, field research, and a statewide training intervention, it shows how technology, training, and trust can turn a persistent last-mile challenge into an opportunity for both livelihood creation and public service reform.

The findings show that Vidyut Sakhis are no longer just an additional bill collection channel. They have become a trusted link between rural consumers and discoms. Their experience offers important lessons for policymakers looking to design scalable, women-led service delivery models across sectors.

Key Highlights

Six-fold rise in collections: Electricity bill collections through Vidyut Sakhis increased six-fold between FY 2023 and FY 2026, reaching approximately INR 14.5 billion (INR 1,451 crore) annually.
Meaningful contribution to rural revenue recovery: Collections made by active Vidyut Sakhis contributed around 15 per cent of rural domestic revenue for UP discoms in FY 2024–25, moderating to approximately 12 per cent in FY 2025–26.
Livelihood gains for rural women: Over 550 Vidyut Sakhis now earn more than INR 100,000 annually, aligning the programme with the Union government’s Lakhpati Didi vision.
Training improved service delivery capacity: A state-wide training intervention covering over 14,000 Vidyut Sakhis led to a 23 percentage-point increase in average knowledge scores, from 56 per cent before training to 79 per cent after training.
Productivity rose after training: Post-training, collections increased faster than the number of active Vidyut Sakhis, indicating higher productivity per agent rather than scale alone.
Stronger consumer reach and trust: Vidyut Sakhis reached over 23 lakh rural consumers in 2025. Of these, more than 4 lakh consumers emerged as frequent payers, paying electricity bills through Vidyut Sakhis in four or more months during the year.
Institutional role expanded: During the 2025 one-time settlement drive, around 15,000 Vidyut Sakhis were deployed as the primary last-mile recovery force, contributing around 13 per cent of collections under the drive.

Key Recommendations

Strengthen field-level workforce management and communication: UPSRLM should establish direct digital communication channels, periodic refresher trainings, and district-level performance dashboards to reduce attrition and support active workforce management.
Deepen discom integration and grievance redressal: Discoms should formally integrate Vidyut Sakhis into consumer complaint systems, enable time-bound grievance protocols, and provide functional digital identities to strengthen credibility and consumer trust.
Strengthen incentives and programme architecture: UPSRLM and UPPCL should define district-wise performance targets, improve analytics on inactive Sakhis and low-compliance consumers, and align the programme with smart metering and digital payment reforms.
Make transactions safer and more efficient: The programme should reduce risks linked to cash handling by exploring safer payment options, suitable banking products, and financial literacy support for Vidyut Sakhis.
Prepare Vidyut Sakhis for an evolving digital role: As smart meters and digital payments expand, Vidyut Sakhis can be trained to support consumer education, digital facilitation, grievance redressal, and trust-building.Replicate women-led service delivery models across sectors: Livelihood missions and SHG federations should be leveraged as implementation partners in other public service delivery systems where trust, access, and service quality determine outcomes.

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Rashi Singh

Programme Associate

[email protected]

“Vidyut Sakhi offers a template for building service-based livelihood models in the rural economy. It shows that when women from self-help groups are equipped with technology, training, timely incentives, and institutional backing, they can deliver essential public services while creating reliable income pathways. The model’s strength lies in treating rural women not as beneficiaries, but as trusted service providers who can improve last-mile outcomes across sectors.”

Executive summary

Discom finances remain a critical determinant of reliable and affordable power supply. In Uttar Pradesh (UP), distribution utilities have historically faced high AT&C losses and uneven revenue recovery, particularly in rural areas (PFC, Performance of State Power Utilities 2022–23., 2024) (UPERC, 2025). While billing coverage and digital payment options have expanded in recent years, irregular payment behaviour, limited payment access, and low consumer trust continue to challenge UP discom’s regular revenue realisation (Agrawal, 2020) (Balani, 2021).

It was in this context that the Vidyut Sakhi (electricity allies) programme was launched in 2020. By FY25, it had been expanded statewide, onboarding more than 30,000 women from self-help groups (SHGs), with half of them actively working as digitally enabled, doorstep bill collection agents across all 75 districts. Each sakhi earns a commission for every bill collected, creating a performance-linked income stream, while discoms benefit from deeper rural reach and a more predictable cash flow.

By embedding SHG members into last-mile electricity bill collection, the programme has strengthened revenue recovery for distribution companies (discoms) while creating dignified performance-linked livelihood opportunities for rural women.

This issue brief examines the Vidyut Sakhi programme as a case study in women-led, commission-based service delivery, with a particular focus on how well-curated training programmes can enable scale, productivity, and institutional trust. Drawing on programme data, field research, and a statewide mass training intervention, it offers practical lessons for policymakers designing livelihood and service-delivery programmes for women.

**Highlights from the Vidyut Sakhi initiative**

In Financial year (FY) 2026, electricity bill collections through Vidyut Sakhis had increased six-fold compared to FY 2023, reaching approximately INR 14.5 billion (1,451 crore) annually.
In FY 2024–25, collections made by active sakhis contributed around 15 per cent of rural domestic revenue for UP discoms, moderating to approximately 12 per cent in FY 2025–26.
Over 550 Vidyut Sakhis now earn more than INR 100,000 (1 lakh) per year, aligning the programme with the Union government’s Lakhpati Didi vision.

Training as the turning point

Even as the programme achieved scale, productivity varied widely until a statewide mass training was undertaken between December 2024 and mid-January 2025. Covering around 14,500 newly onboarded Vidyut Sakhis, the 45-day training was designed to address operational uncertainty, strengthen digital skills, and standardise service delivery.

Post-training assessments show a 23 percentage-point increase in average knowledge scores, alongside a sharp reduction in variation across districts. Crucially, improvements were driven by the training itself, not by district conditions, batch size, or earnings potential— demonstrating the power of standardised, practiceoriented capacity building.

Training also translated into outcomes. Activations2 surged immediately after training, followed by a sustained rise in collections. Collections grew faster than the number of active sakhis, indicating higher productivity per agent, not scale alone. Within eight months, from January 2025, the number of lakhpati didis more than doubled.

Institutional and community outcomes

As performance improved, Vidyut Sakhis shifted from a supplementary channel to a core operational asset for the UPPCL. During the 2025 one-time settlement drive, around 15,000 sakhis were deployed as the primary lastmile recovery force, supported by rapid fintech upgrades and joint field coordination, contributing roughly 13 per cent to the endeavour’s total collections.

At the community level, Vidyut Sakhis have reached over 23 lakh rural consumers, with nearly 17 per cent emerging as frequent payers. This shift from sporadic to regular payments reflects growing trust, convenience, and familiarity—outcomes that conventional enforcement or digital-only approaches have struggled to achieve.

Sustaining the momentum to unlock full potential

At full activation, with all registered sakhis reaching lakhpati-level incomes, the programme can potentially handle over INR 300 billion (30,000 crore) in annual collections. In practice, with varying productivity across districts, a more realistic medium-term aspiration is 4-5 times the current collections, or around INR 60–70 billion (6,000–7,000 crore) annually. Achieving this will require the sakhis to treat their role as a primary occupation, supported by strong institutional backing, reliable digital systems, and sustained consumer trust.

Key takeaways

The Vidyut Sakhi experience shows that women-led service delivery models can act as reform accelerators, not welfare add-ons—provided they are designed correctly. Four lessons stand out:

Treat the last mile as core infrastructure, not a peripheral activity.
Leverage livelihood missions members as implementation partners, not beneficiaries.
Design for income certainty and real-time payments to sustain participation.
Use data and assessments to govern outcomes, not just inputs.

This study demonstrates how technology, training, and trust can convert the last-mile challenges into opportunities. Moreover, this model need not be limited to electricity. We hope this study offers insights and a scalable blueprint for other public service delivery systems where trust, access, and service quality determine outcomes—and where women can play a central role in delivering them.

FAQs

What is the Vidyut Sakhi programme?

The Vidyut Sakhi programme is a women-led electricity bill collection initiative in Uttar Pradesh. It was launched in 2020 by the Uttar Pradesh State Rural Livelihood Mission (UPSRLM) and the Uttar Pradesh Power Corporation Limited (UPPCL). Under the programme, women from self-help groups are trained and onboarded as doorstep electricity bill collection agents. They use a digital application and virtual wallet to collect payments from rural consumers and earn a commission for each successful transaction.
Why is the Vidyut Sakhi model important for discoms?

Discoms depend on timely bill collection to maintain cash flows, procure power, invest in infrastructure, and provide a reliable electricity supply. In rural areas, revenue recovery is often hindered by irregular payments, limited access to payment methods, and low consumer trust. Vidyut Sakhis help address this by providing a trusted local interface for consumers. Their doorstep service makes bill payment more convenient and improves the regularity of collections.
How does the programme support women’s livelihoods?

The programme creates a performance-linked income opportunity for rural women. Vidyut Sakhis earn commissions based on the value and number of electricity bills they collect. Since commissions are linked to effort and performance, the model enables women to increase their income through regular service delivery. Over 550 Vidyut Sakhis now earn more than INR 100,000 annually, contributing to the Lakhpati Didi vision.
What role did training play in improving programme outcomes?

Training was a turning point for the programme. A statewide training intervention was conducted between December 2024 and January 2025, covering over 14,000 newly onboarded Vidyut Sakhis. The training focused on digital app usage, bill reading, commission rules, consumer interaction, and grievance escalation. Collections also rose faster than the number of active Sakhis, showing that training improved productivity.
What can other states and sectors learn from the Vidyut Sakhi model?

The Vidyut Sakhi model shows that women-led service delivery can improve institutional performance when it is embedded within formal systems and supported by clear incentives, digital tools, training, and grievance redressal. Other states can adapt this model to improve public service delivery in sectors such as electricity, water, banking, digital services, local governance, and grievance support. The key lesson is that livelihood missions and SHG networks can act as implementation partners, not just beneficiary platforms.