Two years of AAP govt: Free power powers populism in Punjab
The Aam Aadmi Party had in July 2022 implemented its poll promise of providing 300 units of power free to each consumer every month. Since then it has directly benefited 88% consumers to the tune of ₹11,500 crore.
Almost 90% of Punjab’s households got zero electricity bills last month. Of the 38 lakh consumers billed by the Punjab State Power Corporation Limited (PSPCL), 33.5 lakh got zero bill for electricity consumption.
“It’s a big relief. Electricity is essential. Under the previous governments, it was a challenge for us to pay the bill as it was almost ₹2,000 a month in summer and ₹1,000 a month in winter. We haven’t paid a single bill since July 2022,” said Kanti-54 from Mandiala, a remote village in Amritsar district. She is among the beneficiaries of the Aam Aadmi Party government’s populist scheme cutting across caste and economic background.
The Aam Aadmi Party had in July 2022 implemented its poll promise of providing 300 units of power free to each consumer every month. Since then it has directly benefited 88% consumers to the tune of ₹11,500 crore.
“Free power is our flagship scheme and we are committed to it. It has been implemented only in Delhi and Punjab, which believed chief ministers Arvind Kejriwal and Bhagwant Mann,” says state power minister Harbhajan Singh.
In winter when the consumption remains on the lower side, nearly 90% of consumers are benefited, while in summer, due to higher power consumption in air-conditioned homes, the number of benefited consumers comes down to 65%.
According to the state’s annual budget, a total power subsidy bill of ₹20,477crore crore has been proposed for 2024-25 as compared to the ₹17,457 crore in the last financial year and ₹15,700 crores in 2022-23.
On being asked about the subsidies, Harbhajan Singh said: “Earlier governments were not paying subsidy to the power corporation, while we are doing so. The PSPCL is investing in capacity augmentation and the power sector will continue to grow under Mann’s leadership.”
The Punjab government bought a 540MW private thermal plant at Goindwal Sahib at ₹1,080 crore, a record low price. The PSPCL met the record power demand of over 15,000 MW for the first time last year, while providing free power to an average of 80% of consumers annually.
Overall, Punjab pays subsidies of ₹20,477 crore to power consumers. Besides domestic consumers, farmers and the industrial sector get power subsidies.
For the first time last summer, farmers got free power for irrigation during the day against the earlier trend of it being provided at night.
While power engineers rue the rationale behind providing free power, the freebies are taking a toll on the state’s financial condition. Experts suggest that the government rationalise the power subsidy by giving it only to the needy. Influential people enjoying benefits of free power is uncalled for, they say.
