Capt writes to PM, seeks fiscal package for power sector

Punjab chief minister Captain Amarinder Singh on Wednesday asked PM Narendra Modi for a financial package for the power sector, while suggesting measures to rescue

Punjab chief minister Captain Amarinder Singh on Wednesday asked PM Narendra Modi for a financial package for the power sector, while suggesting measures to rescue the PSPCL and other firms from the current crisis and ensure that consumers are not harassed or hassled in difficult times.

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In a letter written to the PM, Captain said the Power Finance Corporation (PFC), Rural Electrification Corporation (REC) Limited and other financial institutions should provide loans to power sector at 6% per annum for bridging the revenue gap.

He even sought an extension of the RBI moratorium on repayment of outstanding loans and interest from the current three to at least six months. In addition, the applicable interest rate on deferred payment should be considered at a concessional rate, he said.

The CM demanded that the advice issued by the Union ministry of power to CPSUs/Gencos/Transcos not to use coercive measures to recover dues and continue supply/transmission of electricity being an essential service should be extended to at least six months.

He demanded reduction in coal prices, waiver of GST on coal and railway freight for FY 2020-21, waiver of capacity/fixed charges payable on account of capacity not scheduled due to load crash as well as 50% reduction in inter-state transmission charges for FY 2020-21 or at least six months.

He further called for maximum limit of 6% per annum on late payment surcharge on delayed payments to generators and transmission licensees for the year 2020-21.

In a letter to the PM, the CM also sought reduction in renewable purchase obligation (RPO) for the previous and current fiscal, and withdrawal of must run status for renewable energy power projects for FY 2020-21, or at least the next six months so that low cost power from alternate sources can be supplied.

“Alternatively all renewable energy power generators may be given option to supply power at weighted average variable cost of power purchased from conventional sources of power during the month,” he added.

Asserting that his government is committed to providing uninterrupted power supply to people of Punjab, Captain said the entire workforce of power sector is currently mobilised round-the-clock. However, due to lockdown, communities, business and consumers are facing economic hardship and are unable to pay their dues to the PSPCL.