The total power subsidy burden on the state exchequer in Punjab will jump by 14 per cent as power regulator PSERC has worked out subsidy including free power to farmers to the tune of Rs 6,364.49 crore for current fiscal 2016-17.
"The total amount of subsidy for 2016-17 has been worked out at Rs 6,364.49 crore," Punjab State Electricity Regulatory Commission, Chairman, D S Bains said here today while announcing new power tariff for 2016-17.
Last fiscal, the total power subsidy burden was worked out at Rs 5,599.61 crore comprising free power to farmers at Rs 4,709.91 crore.
With Punjab government bearing the entire subsidy burden on account of free supply of power to farmers, the subsidy to Agriculture Pumpsets (AP) has been worked out at Rs 5,196.77 crore.
Power regulator has kept agriculture power consumption at 11,327 million units for 2016-17 as against consumption of 10,264 million units for 2015-16.
Notably, SAD-BJP regime has been doling out free power to farmers, which has been considered as major vote bank for Akalis.
The government has also committed to pay subsidy amounting to Rs 1,167.02 crore for free supply of up to 200 units per month to SC domestic consumers per month and non-SC BPL consumers with conneted load up to 1000 watts.
In addition to it, the government will also bear subsidy of Rs 70 lakh on account of free supply of energy to dairy, fish farming, goat farming and pig farming.
The state government has also committed to pay subsidy to the new industries which came up through progressive Punjab summit for the difference in tariff applicable to relevant industrial category and special tariff of 499 paise per unit.
"The day a new industry is set up and starts consuming power, it will be charged 499 paise a unit and the difference between 499 paise and prevailing tariff rate will be borne by the state government," said Chairman.
In order to attract new investments, Punjab government during progressive Punjab summit had announced last year to offer power to industry at 499 paise a unit.
Besides, the state government is yet to pay pending subsidy of Rs 1,233 crore to power utility Punjab State Power Corporation Limited (PSPCL).
"The government will have to pay interest on the pending subsidy," he said.
Meanwhile, referring to centre's Ujwal DISCOM Assurance Yojana (UDAY) scheme, Bains said that Punjab government would takeover about Rs 20,000 crore debt of PSPCL.
"Punjab government will take over Rs 13,381.49 crore on account of working capital and Rs 2,246.77 crore on account of long term loan. It will take over about Rs 20,000 crore of loans. As a result of this, the interest burden will come down from 11.54 per cent to 9.34 per cent. The total impact of UDAY scheme will be about Rs 270 crore which will be passed on to consumers," said Bains.
Besides, the Commission has also fixed transmission charges for open access at 23 paise a unit and wheeling charges of 132 paise per unit in the new power tariff.
