20 November 2011 |
PSERC reject petition against default subsidy payment by Punjab government

V K Gupta20 November, 2011

PSERC rejected petition made by Gurnek Brar for directions to styate government for timely payment of subsidy.

PUNJAB STATE Electricity Regulatory Commission (PSERC) rejected the petition against default subsidy payment Punjab Government due to Punjab State Power Corporation.
PSERC in its order on petition number 48 of 2011 by Gurnek Brar retired PSEB engineer observed that petition is without any merit and accordingly it is dismissed. PSERC in its tariff order has directed the Punjab Government to pay Rs. 4188.92 crore for free power to a group of consumers with a monthly installment of Rs. 349.08 crore.
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Punjab Government paid monthly instalments of Rs. 190 crore for April and May and Rs. 282.69 crore per month for subsequent months. Punjab government also adjusted Rs. 981.93 crore on account of power bonds issued long back to NTPC for its outstanding dues.

It may be mentioned that Power Minister’s meeting held in July unanimously decided that the state governments would not only clear all outstanding subsidies to power utilities, but ensure advance payment of subsidy as per section 65 of Electricity act 2003 in future. The state governments would ensure all outstanding dues from various government departments to the distribution utilities or release payments from the state budget directly.

The state governments would consider converting loans due from state government to distribution utilities as state government equities to ensure capital infusion and improvement in net worth of utility.

A PSPCL official said that Power Minister’s conference was attended by Power Ministers of various states along with senior most officials associated with state power sector but in case of Punjab meeting was attended by two directors of PSPCL showing the non -serious attitude of state towards power sector.