State weighing options on Centre’s power package
Sarbjit Dhaliwal
Tribune News Service

Chandigarh, October 3
To lighten the huge debt burden of Punjab State Power Corporation Limited (PSPCL), Chief Minister Parkash Singh Badal has directed the officials concerned to examine salient features of the package offered by the Union Government in this regard.

The Centre has announced a package to restructure loans of power corporations of various states. However, there are several riders attached to the package. The state governments accepting the package will have to implement the conditions laid down by the Centre.

Sources said PSPCL had an outstanding short-term loan of Rs 10,000 crore. The state government will have to take over 50 per cent of this loan amounting to Rs 5,000 crore and issue bonds to the lenders. The remaining loan will be rescheduled by the banks concerned to make its repayment easier for PSPCL. The Centre will reimburse 25 per cent (Rs 1,250 crore) of the loan amount taken over the state government.

The Finance Department has told the Chief Minister that the package is worth accepting. Among the riders attached to the package include a condition that PSPCL will have to give metered supply to all consumers.

At present, the farm sector is getting unmetered power supply free of cost. It is often alleged that most of the power theft and line losses were shown as consumption in the farm sector.

The power subsidy bill of the state government has gone up to Rs 5,400 crore from Rs 2,700 crore four years ago. “With metered supply to the farm sector, the power subsidy bill is bound to come down,” said a senior government functionary.

The sources said barring a few, senior officials of the power department were also in favour of accepting the package.

the riders

The state government will take over 50 per cent of PSPCL’s short-term loan amounting to Rs 5,000 crore and issue bonds to the lenders
The remaining loan will be rescheduled by banks and make its repayment easy for PSPCL
The Centre will reimburse 25 per cent of the loan amount taken over the state
PSPCL will have to give metered supply to all consumers, including farmers