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Punjab budget: ₹15,550 cr allocated for power subsidies
Punjab allocates ₹15,550 crore for power subsidies, focusing on free electricity for farmers and households, while enhancing efficiency in the power sector.
The Punjab government has allocated ₹15,550 crore for power subsidies in the state budget, with a major portion earmarked for free electricity to farmers and domestic consumers.
Presenting the budget, finance minister Harpal Singh Cheema said the government remains committed to its welfare schemes, including free power for households and agriculture, while simultaneously focusing on improving efficiency in the power sector.
Out of the total subsidy bill, ₹7,715 crore has been allocated for agricultural power subsidy, ensuring continued free electricity supply to the farming community. For domestic consumers, the government has earmarked ₹5,771 crore to provide 300 units of free electricity per household. According to the minister, nearly 90% of domestic consumers in Punjab do not receive a power bill under the scheme.
An additional ₹2,064 crore has been set aside as industrial power subsidy to support manufacturing and encourage industrial growth in the state.
The subsidy burden this year is around ₹4,000 crore lower than in previous years, which the government attributes to planned reforms and improved efficiency in the power sector. Cheema said the government aims to reduce transmission and distribution losses and enhance the operational efficiency of Punjab State Power Corporation Limited (PSPCL).
“We are poised to save nearly ₹5,000 crore through reforms-driven efficiency gains,” the finance minister said.
Meanwhile, the government has also announced the launch of “Mission Roshan Punjab,” a major infrastructure initiative with an investment of ₹5,000 crore to modernise and expand the state’s electricity distribution network.
Under the programme, the government plans to construct 70 new substations, upgrade 200 existing substations and lay or upgrade 25,000 kilometres of power lines to strengthen the distribution network across the state. Additionally, 8,000 new distribution transformers will be installed or upgraded to prevent overloading and reduce voltage fluctuations.
The initiative also includes advance procurement of materials to ensure timely execution of projects and uninterrupted progress of on-ground work.
The government said the combined approach of maintaining welfare subsidies while improving efficiency and infrastructure will help reduce the long-term financial burden on the state’s power sector.
