CHANDIGARH : Punjab State Power Corporation Limited (PSPCL) is facing a critical financial situation due to non-payment of subsidy by the Punjab government and defaulting payments by various government departments.
PSEB Engineers Association in a letter to Chief Minister Punjab has cautioned that PSPCL is heading towards a man-made financial and power crisis. The power subsidy bill of the state government for the current financial year is expected to be around Rs. 19000 crore without taking into account the pending backlog Rs. 9020 crore.
Various state government departments owe PSPCL more than 2600 crores. Even payments against waiver of defaulting amount by Punjab Government for about 1555 crore is pending for almost 1 year.
The Association has alleged that the concerned authorities in the Punjab Government have deliberately underestimated the expenditure on power subsidy by almost 7000 crore.. Now with no budget provision for this big gap in expenditure, PSPCL is being forced to arrange funds on its own by loans from banks and financial institutions at high interest rates
Punjab State Electricity Regulatory Commission (PSERC) has allowed fuel cost adjustment on quarterly basis to compensate for the inflation in coal prices, has been kept pending by the Punjab Government
Under such deteriorating financial conditions , PSPCL fails to procure sufficient electricity, coal, materials or defaults in payment for electricity purchase during the coming summer season. The power consumers in Punjab are going to face music in the coming paddy season.
To make matters worse Punjab government has failed to fill the posts of CMD/Directors in PSPCL/PSTCL, Member PSERC, Chief Electrical Inspector Now sorry state of affairs has been further compounded by the interference of private consultants in the day-to-day decision making of the power corporations.
Moreover, free 600 units of electricity to domestic consumers has resulted in an unprecedented peak in the power demand in the winter months. Political patronage to theft of electricity has not reduced, rather the free units of electricity have acted as an incentive for some unscrupulous consumers with political patronage, to keep unit consumption below 600 units at any cost. The vigilance activities by corporation staff are being thwarted by these unscrupulous elements.
The power demand is expected to exceed 15000 MW during paddy season , with dwindling finances and no increase in power generation in the state sector, ordinary consumers will face power interruptions and blackouts if immediate corrective and timely actions are not taken by the Punjab Government.