PSEB in deeper crisis
Jangveer Singh
Tribune News Service

Chandigarh, January 22
Figures prepared by the Punjab State Electricity Board (PSEB) for discussion with the State Planning Commission give a first hand account from the horse’s mouth that the board will incur a loss of Rs 2,652 crore in 2008-09 and that this could shoot up to Rs 3,991 crore in 2009-10.

The latest revised estimates for 2008-09 and the plan document for 2009-10 also indicate that the PSEB is falling further into a debt trap with loans from financial institutions increasing over the years as also power purchases.

The estimate, prepared by the PSEB’s finance wing, also makes it clear that operating income is negative now and that the position would worsen unless there is a tariff increase mainly because the board is paying a huge amount on account of interest on loans.

The latest estimates for 2008-09 estimate the board’s income at Rs 11,646 crore and the expenditure at Rs 13,076 crore. With an operating income of minus Rs 1,390 crore, the board also has to reckon with an interest liability of Rs 1,262 crore, taking the board’s net total for 2008-09 to minus Rs 2,652 crore. For 2009-10 the board has calculated a revenue income of Rs 12,591 crore and an expenditure of Rs 14,892 crore. The gap of Rs 2,301 becomes bigger when an interest quotient of Rs 1,690 crore is added to it taking the overall loss to Rs 3,991 crore.

Loans from financial institutions increased from Rs 5,165 crore (2005-06) to Rs 7,514 crore (2006-07), Rs 14,190 crore (2008-09) and Rs 17,820 crore (2009-10). Net revenue , which is a gauge of the financial health of the board, is also in the negative.