10% of state’s expenditure goes to subsidy for power
CHANDIGARH: In what comes as a shocker, the state government’s entire allocation to power sector, ₹12,950 crore, will be spent on supply of free electricity. What’s even more significant is that this forms 10% of the total budget expenditure of the state government of ₹1,29,697 crore.
Of the power sector allocation, the expenditure for 2018-19 will be Rs 8,950 crore with arrears of Rs 4,000 crore carried over from the previous years.
Even as the government was unable to pay power subsidy against free power to agriculture tubewells in the current year, it has taken an additional burden of ₹1,440 crore for subsidised power at Rs 5 per unit to industry.
This was a major pre-poll promise of Captain Amarinder Singh and with its implementation getting delayed, industry representatives had raised a bogey of protest, forcing the government to bite the bullet, despite the acute fund crunch.
The subsidy element also comprises Rs 1,254 for power supply to SC, BC, BPL, and domestic consumers.
An official with the Punjab State Power Corporation Limited (PSPCL) told HT on condition of anonymity that the pending subsidy due to them for the current year had crossed ₹5,000 crore.
The utility has had to scout for loans to pay its uses with the government not clearing its dues.
After all the elements of the subsidy are accounted for, the state government will strengthen power infrastructure, reduce line losses and bring transparency in billing procedure by using information technology tools.
Is he (Manpreet) a fool? The land where the finance minister plans to set up solar and gasbased plants is prime property. The government should plan something worthwhile there SUKHBIR SINGH BADAL, former deputy chief minister