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This is an archive article published on February 5, 2010

Farmers to pay for power from coming rabi season

The free power regime in Punjab is set to end in the coming rabi season. Almost 13 years after it was first introduced by the then Akali government — annulled by the Congress regime on coming to power in 2002 only to be restored in 2005 — the Badal government has written to the Punjab State Electricity Board (PSEB)...

Badal government yet to commit on footing hiked tariff for other sectors

The free power regime in Punjab is set to end in the coming rabi season. Almost 13 years after it was first introduced by the then Akali government — annulled by the Congress regime on coming to power in 2002 only to be restored in 2005 — the Badal government has written to the Punjab State Electricity Board (PSEB) to work out the modalities for charging tariff for agricultural tubewells at the rate of Rs 50 per bhp per month.

The board has started the process for implementing the government’s decision and would soon seek the approval of the Punjab State Electricity Regulatory Commission (PSERC). Though this change in method of subsidy-payment would not affect the quantum of subsidy the board gets for the farm sector,it can be implemented only after the regulator’s nod.

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While agreeing to make farmers pay,the government has,however,not made any written commitment to the board on footing the hiked power tariff for other sectors,as promised by the SAD to ally BJP. The reasons are as much financial as political. Starved of funds,the state is consistently defaulting in payment of subsidy for free power to the PSEB. The

Rs 294-crore monthly installment has not been paid for the months of December,January and February.

Though the new tariff order announced in September took the monthly figure of power subsidy from Rs 216 crore to Rs 294 crore,the state has not paid the revised amount so far. For September and October,Rs 216 crore has been paid while for November just Rs 108 crore — half of Rs 216 crore —has been received by the board.

Also,the Badal government seems to be in no hurry to give in to BJP’s demand of bearing an additional subsidy burden for domestic,commercial and industrial sectors which are paying hiked bills since September.

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“Since farmers too will start paying a part of their power bills,the Badal government would like the BJP to give up its demand in view of the fiscal situation or ask for time till it improves. In any case,the rollback has been promised starting April. By that time,the new tariff order of the regulatory commission for 2010-11 would be in place,” a senior power board official said.

Punjab,Haryana to get relief package for paddy

Though belated,Punjab and Haryana can both expect some compensation from the Centre for the good crop of paddy during a drought year. Punjab Chief Minister on Wednesday said both Punjab and Haryana will be compensated by the Centre for bearing extra financial burden to purchase power at high costs. “Punjab may get Rs 800 crore and Haryana Rs 400 crore as relief from the Centre,” the CM said. Chief Secretary S C Agrawal said the Planning Commission has approved the financial assistance for the state though the form in which it would come has yet not been communicated to the state.

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