No plan to withdraw free power to farm sector: CM Punjab

Tribune News Service

Chandigarh, May 29

Chief Minister Capt Amarinder Singh today said there was no plan to withdraw free power to the agriculture sector in the state.

Read also:

• Cannot trust cash-strapped to give subsidy: Punjab farmers
• Punjab's move to withdraw free power may trigger political storm

 The CM’s tweet came two days after the state government in an official note said it would put in place a scheme for financial year 2021-22 for ensuring cash transfer to farmers through DBT in lieu of free electricity.

CM panicked under pressure: SAD

SAD president Sukhbir Singh Badal on Friday described Chief Minister Capt Amarinder Singh’s denial of his government’s move to withdraw free power facility to farmers as “a desperate and nervous response of a Chief Minister who has been caught in the act”. Sukhbir said, “The Chief Minister and his Congress government have obviously panicked sensing the impending resistance by the SAD and farmers to his Cabinet’s decision on replacing free power with direct benefit transfer.”

In his tweet said, the CM said, “Let me reassure our farmers that there is no plan to withdraw free power to agriculture in Punjab. I am cognizant of your economic condition and appreciate the hard work put in by you in every crop to grow foodgrain for the country. Free power will continue!”

After the CM’s tweet, a senior government functionary said proposals of the Government of India were just discussed in the meeting.

For the past two days, the Opposition has taken on the government on the issue of replacing free power with cash subsidy. Congress leaders had also objected to the proposed move.

Given the precarious fiscal health of the state, it was pointed out that power subsidy would not be paid regularly.

After the last Cabinet meeting on May 27, the government had issued a statement that as part of the reforms necessitated under measures announced by the Centre to avail an additional borrowing limit of 2 per cent of the Gross State Domestic Product (GSDP), it would put in place a scheme for financial year 2021-22 for ensuring cash transfer to farmers through DBT in lieu of free electricity. To become eligible, the state should formulate the DBT scheme and implement it in at least one district by December 31, 2020, the official statement had stated.

The statement had further mentioned that the reforms to be undertaken by the Power Department included reduction in aggregate technical and commercial losses and reduction in the gap between average cost of supply and average revenue realisation (ACS-ARR gap) in the state as per targets. The last date for recommendation to reach the Department of Energy is January 31, 2021.

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