What Channi waived off, AAP demands: Punjab government seeks Rs 1,246 crore as power dues
The government has directed the rural development and panchayats department to clear all pending power bill arrears, saying it was ‘a severe cause of concern’ for the Punjab State Power Corporation Ltd.
Five years after the previous Punjab government, headed by Charanjit Singh Channi, announced to settle the outstanding power bill arrears of Rural Water Supply (RWS) schemes to the tune of Rs 1,246 crore, the current funds-crunched Aam Aadmi Party (AAP) government has asked the department of rural development and panchayats to clear the outstanding dues.
The decision to waive off the power bill on tubewells supplying potable water to village residents was taken by the Cabinet led by Channi in November 2020. It had reduced the water supply bill from Rs 166 to Rs 50 per month per household and stated that the pending dues would be cleared by the state government.
The AAP government has, however, asked the panchayats department to clear the frozen amount of Rs 1,246 crore on priority. The decision was announced to the officials from the rural development department in a meeting by the power department.
Power Minister Sanjeev Arora was not available for comment.
Subsequently, a communication was sent to the rural development and panchayats department on Monday, stating that Rs 1,246 crore on account of electricity dues is pending as of December 31, 2025, from the department of rural development and panchayats. Out of this, an amount of Rs 705 crore pertains to the frozen amount of RWS connections in billing.
The communication further states, “The current monthly electricity bills of RWS connections are being paid regularly by the Department of Water Supply and Sanitation (DWSS), the frozen amount of RWS connections continues to remain unpaid. There has been a persistent delay in the clearance of these electricity dues.”
The letter adds, “The substantial unpaid amount is a severe cause of concern for PSPCL [Punjab State Power Corporation Ltd], particularly under the RDSS scheme of the Ministry of Power/Government of India, GOI, where compliance with the terms outlined in the Standard Operating Procedures and Additional Prudential Norms for Borrowings is crucial, and the non-payment of electricity bills constitutes a serious breach of these terms. This default is not only hindering PSPCL to secure funds from financial institutions (including funds for capital expenditures), but it is also hampering day-to-day operations.”
PSPCL has asked the department to direct the concerned offices or sections of the department to prioritise the clearance of pending electricity bills and ensure prompt payment of current bills regularly. “This huge amount will be passed on to the panchayats now,” said an official, adding, “Where will the panchayats get the money from? Let us see what happens next.”
The AAP government has provided free power supply of up to 300 units per month to all households in the state, and has a burgeoning power subsidy bill of over Rs 22,000 crore annually.
What Channi had promised
Channi had stated that his government would provide free power to all rural water supply schemes, and reduce the service charges on all such schemes by 70 per cent from Rs 166 to Rs 50 per household every month in the villages. He had also burnt copies of power bills in Punjab’s Chamkaur Sahib on the same day in a symbolic gesture to announce the waiver.
The notification after the Cabinet decision had stated, “The Government of Punjab will provide funds to settle the outstanding arrears of power bills of Rural Water Supply (RWS) schemes managed by department of water supply & sanitation (DWSS) & gram panchayat Water Supply & Sanitation Committees (GPWSCs), after settlement with PSPCL.”
It had added, “Government of Punjab will provide funds for free power to all RWS Schemes including multi village surface water supply schemes coming up in State on direct benefit of (DBOT) basis through an annual budget provision/grant.
Kanchan Vasdev is a Senior Assistant Editor in The Indian Express’ Punjab bureau. She is a highly experienced journalist with 22 years of expertise covering high-stakes politics, governance, and social issues in Northern India.
Professional Background
Role: Primary reporter covering the Punjab Chief Minister’s Office (CMO), government policies, and the Aam Aadmi Party (AAP) leadership in the state.
Experience: She previously worked with The Tribune and has played a key role in launching various city editions.
Special Projects:
Abandoned Brides: Authored a monograph on brides abandoned by NRIs as part of the Prabha Dutt Memorial Fellowship.
Environment: Worked as a Centre for Science and Environment (CSE) fellow, focusing on the pollution levels in the Satluj river.
Recent Notable Articles (Late 2025)
Her recent reporting focuses on the legislative strategies and political maneuvers of the Bhagwant Mann-led Punjab government:
1. Legislative & Governance Standoffs
"Punjab govt advances special Assembly session to pass resolution against VB-G RAM G Bill" (Dec 20, 2025): Reporting on the state's move to block the Centre's "Viksit Bharat" mission, which the state claims will undermine MGNREGA.
"Punjab govt doubles down on special sessions, sixth in January" (Dec 19, 2025): Detailing the AAP government's use of special sessions as a legislative tool amid tensions with the Governor.
"Punjab asks 'VIP teachers' working near Chandigarh to go back to border districts" (Dec 16, 2025): Reporting on CM Mann's move to end the practice of influential teachers avoiding postings in remote areas.
2. Political Analysis & Rural Polls
"Punjab rural polls: Why Akalis are likened to dinosaurs in Punjab" (Dec 19, 2025): Analyzing CM Bhagwant Mann's rhetoric against the Shiromani Akali Dal (SAD) following local body elections.
"AAP claims win in 78% Punjab zila parishads as counting continues" (Dec 18, 2025): Breaking down the results of the 2025 rural elections.
"Rahul Gandhi and Sidhu alike, says Bhagwant Mann" (Dec 13, 2025): Covering the CM's critique of the Congress leadership.
3. Law Enforcement & Bureaucracy
"Suspended Punjab IPS officer Ravjot Kaur Grewal awaits reinstatement" (Dec 10, 2025): Investigative reporting on the bureaucratic red tape involving the Election Commission and the state government.
"Punjab declines to give parole to Amritpal Singh" (Nov 27, 2025): Detailing the state government's refusal to grant parole to the radical preacher and sitting MP.
4. Welfare & Economy
"Punjab government's plan to add more freebies to 'atta-dal' scheme hits funds roadblock" (Dec 4, 2024): An analysis of the fiscal challenges facing the state's flagship food security program.
"Mann leads Punjab delegation to Japan and South Korea for investor outreach" (Dec 2, 2025).
Signature Beat
Kanchan Vasdev is known for her insider access to Punjab's political executive. Her writing provides deep insights into how state policies are formulated and the friction points between the state government and central authorities. Her dual expertise in environment and law allows her to report on complex issues like the "Farmhouse Policy" (Dec 18, 2025) and river pollution with a unique policy-oriented lens.
X (Twitter): @kanchan99 ... Read More
