Govt fails to make full payment to PSPCL for 6th year in a row

PATIALA: The aggregated power subsidy bill of the Punjab government is going to rise further in the next financial year as the state continues to default on subsidy payment to Punjab State Power Corporation Limited (PSPCL) for the sixth consecutive year.

Against power subsidy bill of Rs 16,400 crore this year, the state government has managed to pay Rs 7,856 crore only.

Till January 15, 2021, a total 13,627 crore subsidy was due, but the government has so far managed to pay only Rs 7,856 crore, a shortfall of nearly Rs 5,771 crore.

This payment includes book adjustments of Rs 1406 crore in lieu of the various cess imposed by the Punjab government on power tariff.

The government has only paid Rs 6,449 crore in cash, though it was directed by the Punjab State Electricity Regulatory Commission (PSERC) to

pay subsidy in cash, that too in advance in every month.

“The Punjab government’s collection from the GST has dipped this fiscal, thus the government is unable to meet subsidy bill. Once we will get the GST arrears from Centre, the government will manage to pay more, otherwise the aggregate subsidy arrears will continue to rise,” said a finance department official.

The PSPCL is feeling the pinch for delayed and partial release of subsidy.

“We use to pay maximum power purchase bill in summers, when power purchase bill remain almost 60% of the year. However, we never get the same portion of the subsidy from the government. The PSERC every year passes orders to pay subsidy in advance, but government is not adhering to it from last six years, bringing working of power regulator under question,” said a PSPCL management official.

He said PSPCL CMD A Venu

Parsad had twice taken up matter with the finance department to release subsidy amount to meet financial needs of the PSPCL.

The Punjab government 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 Rs 5 per unit to industry, to keep political promises.

The PSPCL has projected power subsidy bill to Rs 13,398 crore for next fiscal.

And as Punjab government set to default on payment of subsidy, the amount likely to cross Rs 17,000 crore, said officials familiar with the development.