Rs 13600 crore pending power subsidy, unpaid electricity bills created severe cash flow crunch for the powercom-PSEBEA
Kanwar Inder Singh/ royalpatiala.in News/ December 23,2024
The PSEB Engineers’ Association (PSEBEA) has once again raised the concern of dwindling financial health of the powercom with the state government and highlighted the draining of fiscal health of the Punjab state power corporation Limited (PSPCL) adversely impacting the working of the power corporation.
Till December 16,2024 the state government has released Rs 12,758.16 crore power subsidy to the powercom.
In a letter to the chief minister Bhagwant Singh Mann, PSEBEA has pointed that “as of now, outstanding dues towards unpaid subsidy bills by the Government of Punjab amount to current year subsidy bill outstanding of Rs. 4,500 crore, the past subsidy dues of Rs 5,500 Cr (for which yearly installment of Rs 1800 Cr is to be paid) and unpaid electricity bills from various government departments stand at Rs 3,600 crore. These dues totalling Rs 13,600 crore (including past dues of Rs 5,500 Cr) have created a severe cash flow crunch for the power corporation, significantly affecting its ability to function effectively. This delay in payments not only exacerbates operational challenges but also compounds financial losses, which will ultimately result in higher power costs for consumers across the state”.
PSEBEA general secretary Ajaypal Singh Atwal said “ the power sector is a critical pillar of the state’s infrastructure, directly contributing to its economic growth and social welfare. Addressing these concerns promptly will not only stabilise the corporation’s finances but also prevent further strain on the state’s energy security. It is requested that instructions be issued to the finance department for immediate release of current financial year pending subsidy bill payments of Rs 6,300 Cr (including installment of Rs 1,800 Cr for past dues) to the power corporation and devise a mechanism on urgent basis for clearing the outstanding electricity bills of Rs 3,600 Cr of various government departments”.
PSEBEA president Jasvir Singh Dhiman said “ the chief minister’s prompt attention to these issues will go a long way in stabilising the finances of the power corporation and safeguarding the state’s power sector from further strain”.
In 2021-22, the subsidy was Rs 10,679 crore, which rose to Rs 15,845 crore in 2022-23 and then Rs 18,714 crore in the next financial year.
