Punjab

Power subsidy bill of Punjab set to rise next year

Vinod Gupta | January 22, 2019 06:11 PM

CHANDIGARH: The power  subsidy bill of Punjab Government  is going to rise next year as the state continues to default on subsidy payment to Punjab state power Corporation Limited (PSPCL).

PSPCL in its tariff petition for the next financial year 2019-20 has projected subsidy amount  Rs. 9073 crore. This comprises of Rs.6454 crore for free power to agriculture sector ,Rs.1869 crore for concessional  tariff for industrial sector and balance amount for different domestic consumers categories.

The Punjab government continues to default on power subsidy payments  to the PSPCL .The government has paid Rs.5883.38 crore to PSPCL up to January this year  whereas it was  required to pay subsidy of Rs 11432 .40 crore  thus leaving a gap of Rs.5549.02 crore.

PSPCL has collected  Rs 1230.63 crore as government duties and after adjusting the same against subsidy amount  due net balance subsidy  on January 15  is Rs 4318.39 crore. The balance  subsidy amount  payable by the  end of current financial becomes  Rs. 6604.84 crore .

The Punjab State Electricity Regulatory Commission (PSERC)  in its tariff order had decided  a subsidy of Rs 13,712 as subsidy for the current financial year and this included arrears of last year also. The monthly requirement of subsidy payable is Rs. 1143.24 crore.

 As of now the Punjab Government has paid an average monthly installment  of around Rs. 700 crore. In January a payment of Rs. 400 crore has been made as such the government is likely to release another Rs 1700 crore and an arrear of about Rs 5000 crore may be carried over to next financial year. Under these circumstances the next years subsidy amount may cross Rs 14000 crore.

Have something to say? Post your comment