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Punjab farmers unlikely to get free power now

Chandigarh: Farmers in Punjab, who get free power from Punjab State Electricity Board (PSEB), may soon have to pay their bills, with the State proposing to do away with the sop to mitigate its financial woes.

Following tough stance from Punjab State Electricity Regulatory Commission (PSERC), the State Government is considering giving power to the farm sector at a subsidised rate instead of free of cost in view of the poor fiscal condition, official sources said here on Monday.

The PSERC sources said, a letter by the commission was sent to the Punjab government on January 5, following the Centre’s instructions wanting to know the criteria adopted to pay subsidy in lieu of free power to the farm sector and poor sections of the society in the State.

The commission would wait for the State Government’s response till February 5, after which the sectors deriving free power could be asked to pay for the power used, the sources said.

As per rules, the state government is supposed to pay the subsidy in advance to provide free power to any sector or section of the society.

In case of default or failure of the same, the commission can order the PSEB to charge the sections of the society, which were to get free power.

The fund-starved state government has not been able to pay subsidy to PSEB from January 2007 onwards, sources said.

With annual subsidy of about Rs 2,700 crore, the arrears amount to approximately Rs 1,350 crore.

Supplying power at 50 per cent tariff would ease the burden of finance department by Rs 1,000 crore.

The PSERC has calculated the subsidy to be paid by the finance department to the PSEB in lieu of free power to farm sector at the rate of Rs 2.40 paise per unit. — PTI

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