Punjab Government looks for ways to raise resources

Ruchika M Khanna

Tribune News Service

Chandigarh, September 21

As the new political dispensation in Punjab, under Chief Minister Charanjit Singh Channi, is set to roll out sops in the run-up to the Assembly polls, the state Finance Department has been asked to explain the “bahi khata” (accounts) of the past four and a half years.

Official sources in the department told The Tribune that they had been asked to prepare a detailed report on the state of finances — revenue receipts, revenue expenditure, total debt, and also on possibility of “asset monetisation”, besides other avenues through which expenditure could be reduced and additional resources generated.

It is learnt that the department would also present its report on termination of Power Purchase Agreements (PPAs) with three independent power producers, wherein it was suggested that the government could look at the exit clause by continuing to pay capacity charges for three years. This way, the state can then buy cheaper power and in turn save hundreds of crores of rupees given to the power producers as fixed charges, says a report of the Finance Department.

Also on the drawing board is asset monetisation, where the government can lease out its assets to private entities for a fixed term to raise additional resources upfront and/or for periodic payments.

Last night, a Cabinet meeting discussed waiver of water charges for rural domestic consumers, reduction in charges for urban domestic consumers and additional 100 units of free power to SC/ BC/economically weaker sections. Since all these measures would require increasing the revenue receipts, the CM reportedly asked the department to be ready with a detailed report by next week, when the next Cabinet is scheduled tentatively on September 29.

Asset monetisation?

• The Financial Department to present report on termination of PPAs with three independent power producers
• If govt opts for exit clause by continuing to pay capacity charges for three years, then it can save hundreds of crores of rupees
• Also on the drawing board is asset monetisation, where the government can lease out its assets to private entities to raise additional resources