Rs 6k crore arrears-a perfect storm for PSPCL due to default in subsidy payment
Kanwar Inder Singh/ royalpatiala.in
Free and subsidised power remained a main agenda for all the political parties in the assembly elections in Punjab. Cheap power is going to remain a key agenda for all the political parties, in the upcoming assembly elections in Punjab, too.
Buts this free, cheap, subsidised power is proving costly to the Punjab state power corporation limited (PSPCL) , as the state government is continuingly fails to compensate the powercom . The shortfall in payment from the government to the power corporation against the power subsidy bill crossed Rs 6K crores , in the last fiscal year, that ends on March 31,2021.
As per the Punjab state power corporation limited officials, “the state government had paid only Rs 9656.95 crores against the power subsidy bill raised by the Powercom of 16,400.26 crores. The gap between the subsidy bill and payment received is Rs. 6743.31 crores. The corporation has taken a provision of Rs 328.65 crores as “amount of Provisional ED payable till 31.03.2021, for the last days, before finalising the balance subsidy amount. Thus, the state government has to pay remaining Rs 6414.66 crores, for the last fiscal year”
“Out of Rs 9656.95 crores, the powercom received, Rs 6056.20 crores under AP (Agricultural Pumping Supply) head, Rs. 1610.31 crores under DS (Domestic Supply) head and Rs. 1990.44 crores under Industry head” said an officer of the PSPCL.
Punjab is giving free electricity to agricultural tubewells, 200 units of free power to Scheduled Caste (SC) families and some weaker sections of society, besides giving subsidised electricity at ₹5 per unit to industry, as per the promise made by the government, during the last elections. To overcome with this increasing deficit, PSPCL is taking loans from banks to survive.
Rs 6k crore arrears-a perfect storm for PSPCL due to default in subsidy payment. Another officer, on the condition of anonymity said “ now free power, cheap power, subsidised power has already become a political issue and things are getting out of control for the powercom. The subsidy figure is mounting, year by year and every year, the default amount is passed on to the next financial year, which is not a good sign.”
April 5,2021
