Rural polls switch off power reforms

Sonia Gandhi may have indicated in Guwahati last month that free power to farmers could be a thing of the past in Congress-ruled states, but...

Sonia Gandhi may have indicated in Guwahati last month that free power to farmers could be a thing of the past in Congress-ruled states, but the Punjab government has made no move to withdraw this sop. Reason: the panchayat elections early next month and the fear that the panchayats could go to the Akalis.

CAPT AMARINDER SINGH

Chief Minister Capt Amarinder Singh had suggested ‘‘the middle path’’ between power reforms and free power. Today, he isn’t sure when that will happen. ‘‘We are working on it and trying to strike a balance — not hurt the interests of the poor farmer even while allowing reforms to take place,’’ he said.

He says the Punjab State Electricity Board (PSEB) faces a loss of Rs 2500 crore, including an outgo of Rs 1200 crore in loan repayments. ‘‘Reforms have to happen.”

But when? When Amarinder met K C Pant, deputy chairman of the Planning Commission, last week, he was reportedly reminded that the electricity board was losing 28.47% of commercial revenue in free supply, and that despite a hefty tariff revision, the revenue covered only 62% of the cost of supply. The state has lost World Bank projects due to its free power schemes.

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Chief Secretary Y S Ratra avoids mentioning a date, too. Asked if it would come after the panchayat elections, Ratra says: ‘‘That would seem reasonable’’.

The Congress is so desperate to make a dent in the Akali stronghold in the panchayats that it advanced the elections by almost one year.

Though free power for small and marginal farmers was first introduced by a Congress CM, Rajinder Kaur Bhattal, it was Badal who extended it to the entire agriculture sector.

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