PSPCL's settlement scheme gets 'lukewarm' response, extended

Aman Sood

Patiala, November 27

With none of the defaulting government departments clearing their pending power bills as per the one-time settlement (OTS) scheme, the government has now again extended it till December 26.

Cash-strapped power corporation

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• The cash-strapped PSPCL has remained under severe financial strain due to the defaulting amount of consumers, especially by the state government departments, and increasing interest on the long-term and short-term loans
• Following political compulsions and poll promises, the power subsidy has risen by more than three times during the last decade, putting additional burden on the state government. The power subsidy was Rs 6,324 crore in 2013-14 and is expected to touch Rs 20,000 crore by the end of this fiscal
• The increase has occurred mainly in the last three financial years, after free and subsidised power supply began to be provided to domestic consumers. In 2021-22, the subsidy was Rs 10,679 crore, which rose to Rs 15,845 crore in 2022-23 and then Rs 18,714 crore in the current financial year

The scheme was launched in May to recover about Rs 4,775 crore pending power bills, which were due towards government and private power consumers. While private sector defaulters have cleared Rs 2.86 crore, government departments are trailing behind.

Despite two extensions, the defaulters have been reluctant to clear their dues. The Punjab State Power Corporation Limited (PSPCL) is still hopeful of collecting the pending dues.

The PSPCL had filed a petition for the introduction of the OTS scheme for all categories of consumers (except agricultural power), following which the Punjab State Electricity Regulatory Commission (PSERC) had approved it for three months in May. However, due to poor response, it was extended again in August for a period of three months till November 24.

Government offices, however, again failed to turn up and deposit their pending bills. “The PSPCL has now got approval from the PSERC and the scheme has been extended for another month,” a circular reads.

A senior PSPCL official told The Tribune: “Many of the government offices are under process to avail the scheme and it will take some more time to complete the administrative/financial proceedings relating to the defaulting government connections. We are hopeful that the defaulters will make optimum use of this scheme.”

“The departments have failed to come forward despite many reminders. The matter is being taken up at the government level,” a source said.

The PSPCL wants to recover Rs 2,534 crore pending dues from over 54 government departments alone. Power Minister Harbhajan Singh ETO had announced the extension of the validity of the scheme for another three months on August 25.

The two biggest defaulters are Water Supply and Sanitation Department (Rs 1,124 crore) and Local Bodies Department (Rs 881 crore). They together owe more than Rs 2,000 crore.

“Arrears against the Local Bodies Department have increased by Rs 500 crore in the last more than a year,” said a PSPCL official. The Rural Development and Panchayats Department owes Rs 286 crore and the Health Department owes Rs 125 crore.