PSEB to get pending subsidy soon
Umesh Dewan
Tribune News Service

Patiala, January 20
In what may be termed as a much needed respite for the Punjab State Electricity Board (PSEB), the state government has decided to pay back its pending subsidy, for supplying free power to farmers and domestic consumers in SC and BPL categories, in two installments.

According to highly placed sources, the government has already assured the board that the first installment would be paid within a week’s time.

Notwithstanding the latest tariff orders of the Punjab State Electricity Regulatory Commission (PSERC), which mentioned that the state government should pay an advance monthly subsidy of Rs 294 crore to the PSEB for the free power supply to various categories, the board did not received any funds from the government for the last three months. Currently, the amount due towards the government is Rs 1,040 crore.

The decision to clear the pending subsidy was taken by the Chief Minister’s office after the board sounded an alert to the state government that its functioning would come to a virtual standstill, in case the pending subsidy amount was not paid.

In wake of the fact that the PSEB does not have sufficient funds to meet its financial obligations, including power purchase, loan installments and staff salaries, the top brass of the board unanimously decided to shot off a communiqué to the state government in this regard during the board meeting held last week.

It was for the first time that the board categorically conveyed to the government that it might have to stall its operations, if the government did not clear off its pending payments.

Without the clearance of the pending monthly installments, the board would not be able to pay loan installments, following which it would not get the financial help from banks and other financial institutions.