Punjab likely to withdraw free power facility to farmers, to reimburse bills
SATINDER BAINS
Tuesday, 19 January 2010
CHANDIGARH: The two member coordination committee of SAD-BJP ruling alliance in Punjab has recommended to Punjab government to bring drastic changes in the subsidy and tax regime. The committee has recommended to charge bills of electricity from farmers and reimburse them twice in a year. The free power facility to BPL families would also be revised.

The Committee has also recommended the setting up of a Social Security and welfare Dedicated Fund of Rs 500 crore. The committee has recommended number of changes in tax structure to generate additional revenue to the tune oif Rs.4000 crores.The committee plans to set up “an efficient and participator tax collection system to check leakages and wastage.”

Harcharan Bains, the media advisor to Punjab Chief Minister Parkash Singh Badal on Tuesday while releasing the report of the two member committee comprising deputy CM Sukhbir Singh Badal and Industry Minister Manoranjan Kalia, said that the committee has recommended to continue the subsidies to farmers and other sector but change the mode of payment. He said that subsidies to all sectors would continue and if needed proposal for more subsidy would be considered by the government.

He said that the two member committee was asked to give its recommendations without diusturbing the promsies made by two parties in the election manifesto. He said that step was taken to mobilise adequate resources for development works. He assured that no welfare scheme would be withdrawn, rather the implementation would be made effective.

Harcharan Bains said that technically the subsidy to the farmer sector would not be withdrawn but rationalised. He stated that “52 percent of American farmer’s income, 46 percent in European Union and 56 percent of Japanese farmer’s income comes from government subsidies. In contrast, Punjab farmers get only 5% of their income in subsidies.”

According to Bains, the Committee has recommended that the introduction of productivity bonus through a system of reimbursement of the power bills directly to the farmers (instead of compensating the PSEB) at rates which would be fixed at Rs. 50 per BHP , as against Rs. 60 being charged 13 years ago when the SAD-BJP government had introduced their abolition The revise format is recommended to get the farmer’s expenditure on power included as a factor for determination of the MSP. At present , this amount is deducted by the ACPC thus fixing a lower MSP.

It means the farmers would have to pay the power bills to the Punjab State Electricity Board every month and they would be reimbursed the funds every six months i.e. after every crop. The recommendation if implemented is likely to face stiff opposition from the farmer community since it may create complex problems for those farmers who are tilling the land on contract and power meters are not in their name.

The committee has also recommended that the facility of 200 free electricity units given to BPL families and scheduled castes be amended and they should be allowed 100 free electricity units. The committee has recommended that the BPL beneficieirs may be compensated by installing CFL bulbs at their permises for which the state government shall bear all the cost. Bains said that with the installation of CFL bulbs, the power consumption would be reduced to one third and hence for 300 units consumed, the billing would be reduced by 200 units. He said that it would help BPL families to get extra benefit of 200 units.

Bains said that propsoal would help in fixing higher MSP for crops since the Agricultue Price Commission in the past had been reducing the subsidy amount from the cost of agriuculture.

Bains however clarified that the recommendations would be considered by the cabinet before implementing them