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This is an archive article published on August 27, 2002

Punjab’s power shock this week

Six years after the genie of free power for farmers was introduced in Punjab, the state is gradually bracing itself to say goodbye to the so...

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Six years after the genie of free power for farmers was introduced in Punjab, the state is gradually bracing itself to say goodbye to the sop. The Punjab State Electricity Regulatory Commission (PSERC) is expected to announce its tariff order this week.

For the first time, the Congress government is also making pronouncements saying that the decision of the Commission shall have to be implemented. Both PSERC chief R.S. Mann as well as Chief Minister Amarinder Singh have indicated that free power for farmers would be on its way out. The Punjab State Electricity Board (PSEB) too is gearing up for the reintroduction of farm tariff and its fields staff has been put on alert.

Three varieties of records — previously lying virtually abandoned — are to be put into use. Consumer ledgers where all tubewell connections are listed, is the first amongst them. The second is conversion of temporary connections into regular ones, and finally those who opted for the Voluntary Disclosure Scheme.

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While the PSERC chief has been talking of imposing tariff during public hearings of the Commission, the CM has begun citing the state and PSEB’s finances in response to questions of power tariff.

‘‘In case the PSERC order is not implemented, the state shall have to compensate the PSEB for the loss, and the state does not have money,’’ Singh remarked at a press conference recently.

Farmers in Punjab used to pay Rs 65 per horse power (HP) in 1996. It was reduced to Rs 50 per HP and then abolished. Assuming a 5 per cent annual increase, a rate of Rs 83 per HP has been arrived. On the other hand, even if the PSERC concedes only half of the demand of the PSEB, Rs 100 per HP would lead to a yield of Rs 600 crore, considering there are an estimated 8.5 lakh tubewells in the state.

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