Hike in Powercom's Issues due to Free Power, Burden likely to exceed by Rs 20,000 crores
Power subsidy is likely to hike to Rs 20134 crore by the fy 2025-26
MOHALI: The facility of free electricity in Punjab is likely to create issues for Powercom. According to PowerCom, the electricity subsidy is likely to increase to Rs 20134 crore by the financial year 2025-26. This will be Rs 3,619 crores more than the current financial year's subsidy.
Due to non-payment of subsidy by the government on time, Powercom will have to take a loan of crores of rupees from purchasing electricity and coal to paying salaries. PowerCom has requested the Punjab State Electricity Regulatory Commission to assess and ensure payment of the subsidy in other advances within 15 days before the first quarter of every quarter as per the prescribed rules.
The electricity subsidy of about Rs 9,020 crores from the Punjab government for the last few years is currently pending. On the other hand, last year CM Bhagwant Maan-led government announced 300 units of electricity free every month. On the other hand, the domestic electricity consumption has increased.
Notably, According to some statistics, in the financial year 2021-22, where the subsidy amount was Rs 11278 crores, it is estimated to reach to Rs 16515 crores in the current financial year. Powercom has calculated to reach the mark of Rs 18,104 crores in 2023-24, 19,090 crores in 2024-25 and 20,134 crores in 2025-26.