Providing free electricity to farmers in Punjab is costing the Punjab State Electricity Board heavy.
In the current fiscal, the power subsidy is Rs 2,602 crore. The subsidy burden on account of free power to farmers and other consumers has increased from Rs 873 crore in 2004-05 to over Rs 2,602 crore in 2008-09.
Moreover, the state electricity board has a debt of Rs 12,500 crore.
Speaking to Business Standard, Suresh Kumar, secretary, power and irrigation, said, “Since 2006, all debt has been raised for purchasing power. We got a state government guarantee of Rs 6,000 crore to banks, so that we can borrow money and purchase power.”
It is worth noting that the demand for power is likely to touch 9,000 Mw in summer against a supply of 6,600 Mw. In fact, Punjab has the highest per capita consumption of power in the country at 972 units, as compared with the national average of 700 units.
In order to meet the demand-supply gap, the state intends to develop thermal power plants at Rajpura, Gidderbaha, Talwandi Sabo and Goindwal Sahib among other places.
Mumbai-based Sterlite Energy Ltd is setting up the 2,000Mw Talwandi Sabo Thermal Power project while GVK is building a 540Mw thermal power plant at Goindwal Sahib. Besides, the stage IV of the 250 Mw Guru Hargobind Thermal Plant is expected to be commissioned shortly.
