Retired PSEB engineer petitions PSERC for timely payment of subsidy
Vinod Kumar Gupta, 31-Jul-2011
Retired PSEB engineer petitions PSERC for timely payment of subsidy

Sunday July 31 2011

Patiala

A retired PSEB Superintending Engineer Gurnek Singh Brar has made additional submission to an earlier petition before Punjab State Electricity Regulatory Commission (PSERC) as Punjab Government continues to default in the subsidy payment to Punjab State Power Corporation Ltd. (PSPCL).

It may be mentioned that PSERC had worked out subsidy amount for free power to agriculture, SC and non-SC/BPL domestic consumers as Rs 4188.92 crore. Punjab Government had committed payment before commission to make payments and accordingly tariff order for 2011-12 was issued in May.

Brar has stated in his petition that instead of complying with the commission order and making monthly advance payment of Rs 349.08 crore, the government paid only Rs 380 crore subsidy for the months of April and May 2011 . In June a payment of Rs. 282 crore was made and similarly in July Rs. 142 crore payments has been made. PSPCL had deputed an official to collect the payment of Rs. 140 crore on Friday.

Gurnek Brar has claimed that with the current trend clearly available as per payment record of June and July 2011 there is every likelihood that the same trend would continue for coming months also.

Brar further says that the cash flow position during summer / paddy months is most critical as maximum energy supplied to agriculture which does not yield proportional extra revenue due to flat rate system, resulting in fixed monthly subsidy amount and maximum cash outflow on account of power purchase .

The cash starved PSPCL may not be able to take 15% rebate on Railway Freight is admissible

only in case of advance payment of Railway Freight. Further in absence of timely receipt of subsidy from Government would lead PSPCL further into debt trap and there is every possibility of delay or default in payment of power purchase bills in respect of central sector projects.

Petitioner has requested PSERC to issue directions to state government to honour its commitment and to release full and timely payment of subsidy to PSPCL. Further PSERC may fix an early

hearing of case.