The UP government has announced the decision, which was approved at a meeting of the board of directors of the UP PTC, reports IANS.
A loan of INR553.5m ($10.2m) has been already been secured from the Indian utility Rural Electrification Corporation for developing and augmenting capacity of nine substations.
These stations are located at: Atmadpur in Agra; Badaun; Mainpuri, Rasda and Sikandarpur in Ballia; Soraon in Allahabad; Sector-62 and Sector-45 in Noida, and Shrimau in Hardoi.
In addition, a loan of INR1.443bn ($26.6m) has been approved for for developing and capacity augmentation of 18 transmission substations in the city of Lucknow and various other places.
Energy Principal Secretary Anil K Gupta told the news agency: "In view of additional generation capacity in offing, it is essential to ensure matching capacity addition in transmission sector also, so that the power thus generated is evacuated for distribution."