Punjab govt to bear power subsidy for industry

12 January, 2018

Chandigarh: Punjab Chief Minister Amarinder Singh today issued formal orders to the power department to bear the Rs 748 crore power subsidy for the industry for 2017 -18, with the variable cost to be fixed at Rs 5 per unit. Following the orders, the Deputy Secretary, Power, has written to Punjab State Electricity Regulatory Commission (PSERC), intimating the government's decision to bear the said subsidy, said an official release.


As per the letter, the state government shall bear 50 percent financial implication of the increased tariff retrospectively, from April to October 2017, for Medium Supply (MS) and Large Supply (LS) industrial category. This amounts to Rs 300 crore and the balance will be borne by the industry, which will deposit the arrears in 12 equal interest-free monthly installments.   

Further, the letter points out that while the two-part tariff system introduced by PSERC is applicable from January 1, 2018, the same shall be subject to Maximum Overall Rate (MOR) for MS and LS category from January 1 to March 31, 2018, as per single part tariff rates fixed by PSERC for the year 2017-18, subject to applicable MMC.   

The state government will bear the Rs 50 crore financial implication of the same. The chief minister had also accepted the recommendation of the power ministry for the government to pay the subsidy to medium and large supply industrial power users, with the variable cost at the rate of Rs 5/KVAH (excluding FCA).   

The chief minister also approved the recommendation for no change in fixed cost as announced by PSERC with effect from January 1, 2018, and not for the full year, said the release. The total subsidy on this account for SP, MS, and LS work out to Rs 398 crore.   

The decision to share the industrial power tariff burden followed detailed submissions by representatives of the industry to power and water resources minister Rana Gurjit on December 19. The decisions taken at the meeting were ratified by the Council of Ministers the next day, said release. PTI