Water supply department asks PSPCL for one-time settlement

According to June 2016 figures, government departments owe Rs 750 crore to the PSPCL. The dues have compounded since then.

Taking a plea that it would be inappropriate to deprive people of drinking water due to disconnection of power to water schemes, the department of water supply and sanitation has asked Punjab State Power Corporation Limited (PSPCL) for a one-time settlement of Rs 258 crore dues.

When contacted, A Venu Prasad said he would examine the department request. (Representative image)

POWER DUES

Rs 750 crore - Various government department owe to PSPCL

Rs 258 crore - Water supply and sanitation department has to pay

Rs 150 crore - pending bills of urban local bodies department

Rs 100 crore - Irrigation department has to clear

The PSPCL, which is facing acute financial crunch, is not in a mood to oblige. “Other departments also owe crores to the corporation and one-time settlement will set a wrong precedence. Waiving such a huge amount is impossible. There’s no law or regulation. The (government) departments can pay in instalments,” said a PSPCL functionary.

According to June 2016 figures, government departments owe Rs 750 crore to the PSPCL. The dues have compounded since then.

In a communiqué to PSPCL chairman-cum-managing director A Venu Prasad, who is also the principal secretary of the state power department, a top official of the water supply department said: “The department could not clear power dues due to inadequate budgetary provisions. The outstanding amount is Rs 257.72 crore, including electricity charges, surcharge and penalty for the delayed payment.”

When contacted, A Venu Prasad said he would examine the department request. “The water supply department has offered to pay the actual power bills and not the penalty and surcharge. It said instruction have been passed on to all water supply schemes to pay power bills regularly July 2017 onwards,” he said.