Govt won’t pay PSEB for power
Umesh Dewan
Tribune News Service

Patiala, March 30
There is fresh trouble for the cash-strapped Punjab State Electricity Board (PSEB). The state government has asked the Board to adjust free power subsidy payment of Rs 1410.65 crore against the Rs 1140.43 crore loans the Board owes it. The already-in-the-red Board had pinned hopes on the free power subsidy payment for financial stability and officials are not happy. They said that government decision violates Section 65 of the Electricity Act, 2003. In fact, the Punjab State Electricity Regulatory Commission (PSERC) had clearly mentioned in its tariff order for 2007-08 that the subsidy amount could not be adjusted against any loan. Also, it must be paid in quarterly advance installments to the Board.

However, the letter - issued by the state Department of Finance to the Principal Secretary of the Department of Power - states that loans worth Rs 1660.5 crore were outstanding against the Board as on March 31. Loans running into Rs 1140.43 crore were due for repayment and the Board has been asked to pay off these loans at the earliest.

The letter, a copy of which is with The Tribune, mentions that the government had decided that the Rs 1140.43 crore loan be adjusted against the free power subsidy amount the state government has to pay the Board. No physical payment shall be made and the loan would be repaid by book adjustments.

“It is not the first time that this has happened. Earlier also the state government had adjusted Rs 1362 crore payable to PSEB in 2007-08 against an outstanding loan of Rs 3075 crore,” said PSEB Engineers’ Association president HS Bedi. Board chairman HS Brar was not available for comment.