Next government will bear burden of over Rs 12K-cr power subsidy in Punjab

Aman Sood

Tribune News Service

Patiala, January 6

Continuous non-payment of dues in lieu of subsidies clubbed with the recent pre-poll freebies have added to the financial burden of the already cash-strapped Punjab State Power Corporation Limited (PSPCL).

As a result, the next government will have to face total dues of Rs 12,600 crore, including around Rs 9,000 crore pending power subsidy.

According to data collected by The Tribune, at present the state government owes more than Rs 8,900 crore of pending subsidy to PSPCL in next quarter as it has paid only Rs 9,600 crore in the first three quarters of the financial year, including Rs 900 crore this week.

“In addition to these, the PSPCL management is yet to receive Rs 1,500 crore on account of waiver of arrears of defaulting consumers and the pending power bills amounting to around Rs 2,000 crore from different government departments. The total payments due in the current financial year will touch Rs 12,600 crore,” said a top official.

In the Annual Revenue Requirement (ARR) for next financial year, now PSPCL has submitted a revised subsidy payment estimate for the year 2021-22 amounting to Rs 12,245 crore.

“The cash constraints may pose problems for the purchase of essential material, and delayed payments to suppliers and contractors, and thus hindering the development works,” said VK Gupta, spokesperson, All India Power Engineers Federation.

“The financial condition of PSPCL is continuously deteriorating due to non-payments by the state government and it could soon face a scenario where even employees’ salary and pensions could face hurdles,” Gupta added.

Since assuming power in 2017, the Congress government has also defaulted on paying subsidy dues in every fiscal. The previous SAD-BJP regime had left arrears of Rs 2,342 crore for it. With CM Channi’s announcement of further sops, the subsidy bill for the present fiscal has reached Rs 20,000 crore.

PSPCL CMD Baldev Singh Sran said they received Rs 900 crore earlier this week and were “in touch with government for release of pending payments”. “We are taking it up with the state government,” Sran added.