PSPCL likely to clear ₹10 cr pending electricity tax with Mohali MC this week

The Punjab State Power Corporation Limited (PSPCL) is likely to pay ₹10 crore pending electricity tax to the Mohali municipal corporation this week

The Punjab State Power Corporation Limited (PSPCL) is likely to pay ₹10 crore pending electricity tax to the Mohali municipal corporation this week.

Mohali MC had earlier claimed that it is yet to receive ₹20 crore in pending electricity tax, which PSCPL had refuted. (HT FIle)

Mohali MC had earlier claimed that it is yet to receive ₹20 crore in pending electricity tax, which PSCPL had refuted.

MC commissioner Navjot Kaur had on Friday met PSPCL officials, including the executive engineer, where the power corporation agreed to clear ₹10 crore pending payment till March 2021 and dues from the 2021-22 fiscal till date.

A senior MC official said that the remaining ₹10 crore is the power tax for Sectors 76 to 80 from November 22, 2017, to September 30, 2022 (five years), which earlier did not fall under MC’s jurisdiction.

A senior MC official said PSPCL pays 15% electricity duty to the state government for rural areas. For urban areas, 13% ED is paid to the state, while the remaining 2% is paid to MC

“PSPCL was not aware initially that Sectors 76 to 80 are not included in the jurisdiction of MC and the department kept depositing full tax with the state government instead of paying 2% to the MC. We will make adjustment in the future, but it may take another two years,” said a senior PSPCL official privy to the matter.

Meanwhile a senior PSPCL official said the electricity department will deduct ₹1.15 crore from the due amount, as the civic body also has pending payment with PSPCL.

“If we get ₹10 crore by this week, it will help us to use the funds for civic work including re-carpeting of roads which is currently underway. MC is already going through its worst funds crunch,” said a senior MC official on condition of anonymity.

MC commissioner has in multiple written communiqués requested Baldev Singh Sran, chairman/managing director, PSPCL, to direct the finance department to clear the dues at the earliest.

Municipal corporations in the state levy 2% municipal tax on consumption, use and sale of electricity within city limits.