ADVANCE SUBSIDY Punjab fails to make payment to power corp

Submitted by lovekesh on Thu, 18/08/2011 - 7:23am

ADVANCE SUBSIDY
Punjab fails to make payment to power corp
Umesh Dewan
Tribune News Service

Patiala, August 17
Despite the Punjab State Electricity Regulatory Commission (PSERC) tariff order dated May 9, 2011, the Punjab Government is still not releasing the full amount of monthly advance payment for power subsidy (Rs 394.08 crore) to the Punjab State Power Corporation Limited (PSPCL). According to figures for the past four months, the state government had adjusted some amount from power subsidy payment with pending loans of PSPCL. Furthermore, the government is also not releasing the monthly instalments in advance.

Notably, in lieu of the free power being given to agriculture sector, SCs, non-SC/BPL domestic consumers, the state government has to make advance payment of Rs 394.08 crore to PSPCL on monthly basis. But contrary to this, for the months of July, the state government released just Rs 282.69 crore, which is Rs 111.39 crore less than the full subsidy amount. For the month of August so far, the government has released Rs 142 crore (see box).

Engineers working with PSPCL have flayed the Punjab Government for its failure to release the full amount of the monthly advance payment of the power subsidy to PSPCL. PSEB Engineers’ Association president H.S.Bedi has said despite the PSERC tariff order, the Punjab Government is still not releasing the full advance subsidy payment to the PSPCL.

Speaking to TNS, Bedi said on account of ill planning and irresponsible attitude of the SAD-BJP government, the power corporation was on the verge of financial collapse.

Elaborating the matter, he said either the state government adjusts the power subsidy amount with the pending loans of the PSPCL or delays the release of the power subsidy.

“The decision of the state government to adjust the subsidy with loan amount is in gross violation of Section 65 of the Electricity Act, 2003. Since 2006-07, PSPCL had been continuously registering commercial losses. PSPCL suffered a loss of Rs 1,800 crore (2006-07), Rs 1,611 crore (2007-08), Rs 1,292 crore (2008-09) and Rs 1,623 crore (2009-10). There is immediate need to bring the financial condition of PSPCL on track,” he said.

Association general secretary Bhupinder Singh said the state government should infuse fresh equity, pay regular advance power subsidy payment and invest in power generation projects, in order to ensure good fiscal health of the PSPCL. “It is really unfortunate that the state government is not complying with the PSERC tariff order. If the full amount of the advance payment for the power subsidy was not released on time, the financial condition of the PSPCL would deteriorate further,” said Padamjit Singh, a power sector expert. All attempts to contact Anirudh Tiwari, Secretary, Power, proved futile.

power shock

Monthly advance payment for power subsidy is Rs 394.08 crore

For July, the government released just Rs 282.69 crore

The power corp is on the verge of financial collapse

The corporation is suffering losses since 2006-07

Infuse fresh equity into power corp, say engineers