Punjab Finance Minister Lal Singh on Sunday said Punjab State Electricity Board would not be dissolved or privatized and assured that there was no move to retrench the board's employees.
"The state government has decided not to privatize the board (but) encourages interested private parties to install power plants in the state as there is lack of fund with the government to install new power generation plants," Singh told reporters here.
Justifying the imposition of power tariff on farm sector, he said this was a must to avail World Bank loan. The bank had not given loan during the previous SAD-BJP rule because of the free power scheme.
"Although power worth Rs 1250 crore is being distributed to farmers, government has imposed minimum tariff to collect only Rs 300 crore. Rest of the money is still going to be subsidised," Singh said.
In principle, the bank has agreed to give loan of Rs 5000 crore, out of which Rs 1000 crore would be spent to upgrade functioning of PSEB and the rest for development projects, water supply and building basic infrastructure.
Regarding the abolition of octroi duty from July 1, the minister said it may be delayed as the government had decided to impose two per cent local area development tax (LADT) on goods coming to the state before lifting octroi.
{{/usCountry}}Regarding the abolition of octroi duty from July 1, the minister said it may be delayed as the government had decided to impose two per cent local area development tax (LADT) on goods coming to the state before lifting octroi.
{{/usCountry}}"As we have formed a committee on the issue of LADT which will submit its report by July one. If every formality is completed by July one, octroi will be abolished by that date," he added.