CM to decide on power subsidy [Tribune News Service, August 30 2009]

Submitted by Gagandeep Singh... on Mon, 31/08/2009 - 6:23am

CM to decide on power subsidy
Chitleen K Sethi
Tribune News Service

Chandigarh, August 30
Chief Minister Parkash Singh Badal will take the final call on the issue of providing subsidised power to farmers in the state.

The Department of Power has moved a file to the Chief Minister asking for a decision on providing Rs 3,141 crore worth of power subsidy to farmers, Dalits and BPL families.

In case it is decided that the state cannot bear the load of the subsidy due to severe cash shortage, the beneficiaries, including farmers, will have to pay Rs 2.85 per unit for the electricity used.

The Punjab State Electricity Regulatory Commission had written to the government asking them to clarify how the government intended to foot an additional subsidy amount of Rs 540 crore.

The power subsidy amounted to Rs 2,602 crore last year and as the cost of power had increased by 11 per cent, the subsidy amounts to over Rs 3,140 crore.