Punjab Newsline
Petition filed before regulatory commission for timely release of subsidy
VINOD KUMAR GUPTA
Thursday, 15 October 2009
CHANDIGARH: Padamjit Singh has filed a petition before the Punjab State Electricity Regulatory Commission seeking timely release of subsidy amount due to PSEB by Punjab Government.

Padamjit Singh the retired PSEB chief engineer has claimed in his petition that PSEB has faltered on Rs. 142 crores payment to NTPC for the electricity purchased in September. This has happened, as the cash starved board has not received subsidy amount for the first six months of current financial year from Punjab Government due to non-compliance of the PSERC Tariff Order of September 8 .

The Commission in its order had determined the subsidy payment of Rs 3144.25 crore for 2009-10 payable by the government for free supply to a section of consumers.. In addition an amount of Rs 386.17 crore pertaining to past period was also payable by Govt. of Punjab to PSEB.
The subsidy payments as paid by Govt. of Punjab to PSEB for the months April to August 2009 comes to Rs. 1083.83 crores. The balance subsidy for the current year Rs 2060.42 crore is to be paid in 7 monthly installments of Rs 294.35 crore.

Padamjit said that as per National Electricity Policy the State Govt. has to make a provision in the State budget to ensure the payment of power subsidy. Punjab government has made a budgetary provision of Rs. 2600 crores towards subsidy to be paid to PSEB. The regulatory commission has worked out a subsidy of Rs. 3144.25 crores for supply for agriculture sector. Another amount of Rs. 386.17 crores pertaining to previous years is also to be paid by the state government.

In view of petition has also sought the increased allocation of Rs. 3536.42 in the state governments budget from the present allocation of Rs. 2600 crores.