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PSPCL bleeds as power demand soars by 50% in scorching April
In the absence of timely support from the state government, the PSPCL had no other option but to go for a short-term loan of ₹500 crore for the purchase of power in April
The sultry summer has not only put an extra burden of ₹300 crore on Punjab State Power Corporation Limited (PSPCL) but also dented the image of the government as long power cuts have become a norm in the state.
Due to power shortage, it’s for the first time that the PSPCL has purchased ₹300 crore of extra power from the grid in the month of April.
In the absence of timely support from the state government, the PSPCL had no other option but to go for a short-term loan of ₹500 crore for the purchase of power in April.
Despite burning its coffers, the PSPCL has failed to meet the demand, which rose by almost 50 per cent from last year, disturbing the power schedule for the corporation and forcing it to impose power cuts. Due to unprecedented power cuts in April, the power corporation drew the ire of the public.
“It was for the first time such a high temperature was witnessed in the first week of April. We were anticipating it at the end of April. Now, two units of the Talwandi Sabo power plant and a unit of the Ropar thermal plant have gone out of operation forcing us to impose cuts,” said a PSPCL official. He said the PSPCL coffers are dry as it has not received the subsidy.
The PSPCL is facing financial strain due to non-payment of pending electricity dues by various government departments and balance subsidy for the last financial year on account of free power to agriculture and subsidised power to other sets of domestic and industrial consumers, said VK Gupta, spokesperson, All-India Power Engineers Federation (AIPEF).
The pending payments of electricity bills up to March ending this year from 47 government departments to the PSPCL is ₹2,650 crore.
Besides, as per the PSPCL website, the pending subsidy for the last year is ₹7,117 crore. The PSPCL in its annual revenue requirement has worked out that the subsidy for the current financial year will be ₹13,929 crore. This amount does not include the additional subsidy for free 300 units for every household from July next announced subsequently this month.
Gupta said the financial survival of the PSPCL depends upon the timely payment of its dues by the Punjab government.
Meanwhile, a 210-MW Ropar thermal plant was back in operation as the PSPCL fixed the snag. Another unit of 660 MW of Talwandi Sabo will be synchronised with the grid on Friday, said a PSPCL official. He said this generation will ease the power supply and will provide relief to the public.
