State govt fails to pay PSPCL for free power
Jangveer Singh/TNS

Chandigarh, November 3
The Punjab government may have pulled out all the stops to host the Kabbaddi World Cup but it failed to pay the Rs 282-crore subsidy quotient on account of free power to the agriculture sector to the state electricity utility for October.

Since the subsidy is to be paid in advance at the start of the month as per the order of the State Electricity Regulatory Commission, the government is now due to pay the subsidy for the month of November also. Non-payment of subsidy has created a financial crisis in the PSPCL and could also result in curtailing of the electricity supply from central sector companies to Punjab. The state owes central companies around Rs 140 crore in unpaid bills for power purchase and the 60-day payment deadline ends tomorrow.

According to the tripartite agreement signed between the Punjab government, Reserve Bank of India (RBI) and the Union Govenrment, in case the central sector power bills remain unpaid for more than 60 days, the central power companies can curtail or regulate power supply to Punjab.

Also, the RBI will be empowered to make deductions from central plan allocation funds to Punjab and utilise this deducted amount to make the payment of energy bills directly to the central sector power companies, including NTPC, NHPC, Powergrid Corporation, Nuclear Power Corporation, Sutlej Jal Vidyut Nigam and Tehri Hydro Development Corporation. If Punjab defaults on making the payment tomorrow, it will also be charged late payment surcharge at the rate of 15 per cent per annum. PSPCL officials said the matter was being taken up with the government and efforts were on to get the subsidy for the month of October released at the earliest.