CM asks power department to bear ₹748 crore subsidy for 2017-18
The government will bear 50% financial implication of the increased tariff retrospectively, from April to October 2017, for medium supply and large supply industrial categorypunjab Updated: Jan 12, 2018 15:19 IST
In order to implement the Rs 5-a-unit power for industry, chief minister Captain Amarinder Singh on Thursday issued formal orders to the power department to bear the Rs 748 crore power subsidy for 2017-18.
Following his instructions, the deputy secretary, power, wrote to the Punjab State Electricity Regulatory Commission (PSERC) intimating the government’s decision to bear the subsidy, according to an official spokesman.
As per the letter, the state government will bear 50% financial implication of the increased tariff retrospectively, from April to October 2017, for medium supply (MS) and large supply (LS) industrial category. This amounts to Rs 300 crore and the balance will be borne by the industry, which will deposit the arrears in 12 equal interest-free monthly instalments.
The state government had promised to give power to industry at Rs 5 a unit from November 1, but it got delayed. In the meantime, power tariff was hiked. On December 19, power minister Rana Gurjit Singh met industry representatives promised to bear half the implication of the increased tariff and supply power at the promised rate in the New Year.
Further, the department’s letter points out that while the two-part tariff system introduced by the PSERC is applicable from January 1, 2018, the same shall be subject to maximum overall rate (MOR) for medium supply and large supply categories from January 1 to March 31, 2018, as per single part tariff rates fixed by the PSERC for the year 2017-18, subject to applicable minimum monthly charges. The state government will bear the Rs 50-crore financial implication of the same.
The CM also accepted the recommendation of the power department to pay subsidy to MS and LS industrial power users, with variable cost @Rs 5/KVAH (excluding FCA), besides approving recommendation for no change in fixed cost as announced by the PSERC with effect from January 1, 2018, and not for the full year, said the spokesperson.
The total subsidy for SP, MS and LS works out to Rs 398 crore. The decision to share the industrial power tariff burden followed detailed submissions between the industry representatives and the minister