Power Corp subsidy issue hanging fire
Umesh Dewan/TNS

Patiala, December 18
Even after six months, the matter pertaining to the adjustment of Rs 981.93 crore by the state government, pending towards the Punjab State Power Corporation Limited (PSPCL), with the subsidy for free power to be given to the Power Corporation for the year 2011-12 is yet to be resolved.

It is learnt that the cash-strapped PSPCL is finding it difficult to manage funds for its smooth functioning and the authorities had sent a letter to the State Government requesting that loans/principal should not be adjusted with the annual subsidy for free power.

Notably, as per the tariff order for 2011-12 dated May 9, 2011, issued by the Punjab State Electricity Regulatory Commission (PSERC), the Punjab Government was to pay Rs 4,188.92 crore for the free power subsidy.

However, as per the documents available with The Tribune, the principal amount of tax free power bonds, along with 8.5 per cent interest, paid by the State Government to the Power Corporation from 2003-04 to 2010-11, an amount of Rs 981.93 crore was pending towards the PSPCL. Subsequently, on May 24 this year, the State Government issued an order through which Rs 981.93 crore was adjusted with the total annual power subsidy of Rs 4,188.92 crore.

The order, a copy of which is with the TNS, reads, "Net subsidy payable for the year 2011-12 to the PSPCL works out to be Rs 3,206.99 crore."

However, in view of the fact that the PSPCL is in a serious debt-trap, the authorities of the Finance Department of the Power Corporation had taken up the matter with the state government.

The PSPCL authorities had requested the Government that subsidy amount payable by the State Government should not be adjusted with the principal/loan pending towards the PSPCL.

Despite repeated requests, the functionaries of the PSPCL Finance Department were not ready to comment on the matter. However, senior officers requesting anonymity confirmed that the PSPCL had again requested the State Government that free power subsidy should be paid to the PSPCL without adjusting any principal/loan pending towards the Power Corporation.

When contacted, Secretary, Power, Punjab, Anirudh Tiwari said that the State Finance Department had adjusted an amount of Rs 981.93 crore against the free power subsidy. "We are preparing our case and will send it to the Finance Department that Rs 981.93 crore should not be adjusted against free power subsidy", he added.