The latest announcement of the Punjab Government to increase the existing limit of free power being given to Scheduled Caste (SC) and Below Poverty Line (BPL) families for domestic consumption by 100 units per month is likely to increase the problems of the cash-strapped Punjab State Power Corporation Limited (PSPCL).
Since the decision taken by the state Cabinet is a policy matter, the PSPCL authorities are tight-lipped over the announcement. However, considering that the state government has not been able to pay the full amount of the advance monthly payment for free power to agriculturists, SC and non-SC/BPL domestic consumers, senior functionaries of the power corporation are “extremely worried” over the Cabinet decision.
Figures available with The Tribune reveal that the total amount of subsidy for free power for year 2011-12 was Rs 4,188.92 crore. From April to December, the state government was supposed to pay Rs 3,141.72 crore to the PSPCL. However, it paid only Rs 2,076.14 crore and a sum of Rs 1,065.58 crore was still outstanding towards it.
Notwithstanding the Punjab State Electricity Regulatory Commission (PSERC) tariff order dated May 9, 2011, the government has not been releasing the full amount of the monthly advance payment for the power subsidy (Rs 394.08 crore).
Read More:http://www.tribuneindia.com/
