Free power in Punjab may go
Tribune News Service

NEW DELHI, Dec 14 — Free power for farmers could be a thing of the past in Punjab if the state decides to follow suggestions from the Centre to dismantle such populist measures.

Although a decision to this effect is yet to be taken by the Punjab Government, according to sources in the central government such a decision cannot be ruled out especially since the Union Power Ministry is soon expected to be advising all states to shun such revenue-draining measures.

According to informed sources, a circular to this effect would be issued by the Power Ministry to all states and Punjab could choose to implement it considering the precarious fiscal condition in the state.

The move of doing away with free electricity, if implemented, will be a reversal of an earlier decision announced by the Shiromani Akali Dal as an electoral promise and implemented during the past three and a half years it has been in power.

However, with both the Centre and international lending agencies like the World Bank insisting on cutting of such populist measures in order to have greater fiscal discipline, Punjab may be left with little choice in the matter.

There has also been criticism from the opposition on the count that free electricity was not benefiting the rural poor but the large farmholders.

According to information here, a Punjab Cabinet sub-committee on mobilisation set up three months ago had suggested doing away with free power. The report was submitted last month and only awaits the nod of the Cabinet before being implemented, the sources said.

If the Punjab Cabinet approves of the move then it could be seen taking a leaf out of the Telugu Desam Party in Andhra Pradesh where Mr N. Chandrababu Naidu lifted prohibition and also increased the price of rice supplied for the poor from the popular Rs 2 per kg in order to reduce the large deficit.