Punjab News

Punjab defaults on payment of power subsidy

July 04, 2019 11:27 PM

CHANDIGARH: Punjab Government has defaulted on payment of power subsidy to PSPCL on account of free power for agriculture sector, subsidized power for industry and free power to SC/ST/BPL consumers .

As per PSPCL website the total subsidy amount payable in first quarter  of current financial year was Rs. 3555 crore and PSPCL has got theoretically Rs 883.31 crore..The cash received  by PSPCL is only Rs. 669.3 crore and balace has been adjusted against UDAI bond interests..

PSPCL has also  adjusted Electricity duty of 542.57 crore and IDF 203.49 crore payable to Punjab Government and collected by PSPCL through electricity bills. The balance subsidy due after adjustments  for first quarter is Rs.1925 crore out of total due of Rs. 3555 crore.


Punjab state Electricity Regulatory Commission (PSERC) has assessed the power subsidy to be given to PSPCL at Rs. 14972 crore including arrears of previous years amounting to Rs.5297 crore. The monthly subsidy to be paid by Punjab Government in advance is Rs.1268.57 crore.

Punjab Government is unable to pay subsidy bills in time as it faces financial problems. Further the centre government has fixed the monthly borrowing limits instead of earlier provisions of quarterly borrowing limits.

It may be added that the ministry of power has asked all states to restrict power supply to agriculture consumers to eight to ten hours a day  to conserve ground water.

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