Cash crunch holds up power subsidy

Aman Sood

Tribune News Service

Patiala, February 25

The state government has admitted that it is unable to clear the advance subsidy for 2017-18, including the additional subsidy committed for providing power to the industrial sector at Rs 5 per unit.

The government, in its reply to a petition filed with the Punjab State Electricity Regulatory Commission (PSERC) by retired engineer Padamjit Singh, has said that the state’s financial position is not good for paying subsidy.

In April 2017, Padamjit had filed the petition seeking compliance of the Electricity Act, 2003. In its reply dated February 6, 2018, the government said Rs 11,542-crore subsidy would be payable for 2017-18, of which Rs 2,304 crore had been adjusted against various heads, while Rs 4,748 crore would be pending as on February 28.

In the reply, the Additional Chief Secretary (Power) said the matter was taken up with the Finance Department, which had conceded that subsidy was liable to be paid in advance as per the Electricity Act.

“There has been a major disruption in the receipt of revenues during the current year on account of introduction of the GST. The state government also has to pay an additional Rs 3,000 crore per year to the food account,” it further reads.

“The state government is committed to disbursing the entire subsidy. The commission is therefore requested to give the Finance Department some time,” the letter says.

Meanwhile, the PSERC has directed the government “to submit the action plan on subsidy payment in three weeks”. It has fixed the next hearing on April 25. “The extenuating circumstances relating to GST and payment to the food account are lame excuses which have no relevance to the Electricity Act,” says Padamjit, who has written to the Chief Minister and the Finance Minister.