Amarinder asks power dept to bear ₹748-cr subsidy burden for this fiscal

CHANDIGARH: In order to implement the ₹5-a-unit power for industry, chief minister Captain Amarinder Singh on Thursday issued formal orders to the power department to bear the ₹748 crore power subsidy for 2017-18.

Following his instructions, the deputy secretary (power) wrote to the Punjab State Electricity Regulatory Commission (PSERC) intimating the government’s decision to bear the subsidy, according to an official spokesman.

As per the letter, the state government will bear 50% financial burden of the hiked tariff retrospectively, from April to October 2017, for medium supply (MS) and large supply (LS) industrial category. This amounts to ₹300 crore and the balance will be borne by the industry, which will deposit the arrears in 12 equal interestfree monthly instalments.

The government had promised to give power to industry at ₹5 a unit from November 1, but it got delayed. In the meantime, power tariff was hiked. On December 19, power minister Rana Gurjit Singh met industry representatives promised to bear half the implication of the increased tariff and supply power at the promised rate in the New Year.

The letter points out that while the two-part tariff system introduced by the PSERC is applicable from January 1, 2018, the same shall be subject to maximum overall rate (MOR) for medium supply and large supply categories from January 1 to March 31, 2018, as per single part tariff rates fixed by the PSERC for the year 2017-18, subject to applicable minimum monthly charges. The state government will bear the ₹50-crore financial implication of the same. The CM also accepted the recommendation of the power department to pay subsidy to MS and LS industrial power users, with variable cost @₹5/KVAH (excluding FCA).