E-Paper
Facing Rs 450 cr loss, PSPCL defers paying full salary to 60% staff
With all collection stalling, balance salary likely to be paid by April 20; no salary cut for category C and D employees
The Punjab State Power Corporation Limited (PSPCL), set to suffer a loss of Rs 450 crore due to the curfew with power sales nosediving, has paid only 60% of salary to employees, except those in C and D category. The deferred 40% is likely to be credited by April 20; PSPCL has a monthly salary and pension bill of Rs 250 crore.
The decision impacts 60% of its 32,865 employees; the corporation has 71,000 pensioners who have got full payout. For the time being, the chief managing director (CMD) and all other directors will not get salary. They are retired power engineers from other entities and get pension.
“The Punjab government had to pay Rs 14,718 crore to the PSPCL in 2019-20, but it gave us Rs 9,200 crore only. The shortage of Rs 5,500 crore of subsidy hit us financially. The curfew means a loss of Rs 450 crore. PSPCL has no option. It is not a cut, but deferring of salary,” said a PSPCL top functionary.
“The pandemic of Covid-19 has affected the world economy. PSPCL’s revenue has also been hit due to the lockdown and the imposition of curfew. Under the current distress situation, and in view of the financial crunch of the PSPCL, it has been decided to defer or make part payments of salaries for month of March 2020,” the orders from PSPCL read.
There is no deferment for all category D employees; probationers, those who work only on a basic pay scale and don’t get any other allowance; all employees of C category having grade pay up to Rs 3,400, and employees with net salary less than Rs 30,000.
“We are strongly resentful. Employees brought PSPCL into profit. The government’s non-payment of Rs 5,500 crore subsidy led to the cash crunch. We have met the CMD, who has assured balance payment by April 20,” said Jasvir Singh Dhiman, president, PSEB Engineers Association. CMD Baldev Singh Sran could not be contacted despite repeated attempts.
Strap/Blurb
40% of amount has been held back and is likely to be paid by April 20; officials claim financial mess also due to non-payment of Rs 5,500 crore in subsidy from the state govt
