AAP fulfils ‘first’ guarantee, announces 300 free units per month for 62L domestic consumers Rs 1500 cr additional subsidy burden annually; Announcement may benefit AAP in HP

| | Chandigarh
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AAP fulfils ‘first’ guarantee, announces 300 free units per month for 62L domestic consumers Rs 1500 cr additional subsidy burden annually; Announcement may benefit AAP in HP

Sunday, 17 April 2022 | Monika Malik | Chandigarh

For political parties, it’s all about power for power. Just about a day after BJP-led Government in the neighbouring Himachal Pradesh announced 125 units of power free to all households, the Aam Aadmi Party (AAP) Government in Punjab on Saturday announced 300 units per month free for its domestic power consumers.
The decision, fulfilling the first “guarantee” given by AAP supremo Arvind Kejriwal on June 29, last year, in run-up to Punjab polls, will not only silence its critics in Punjab but is also expected to give the much-needed push to the party which is eyeing to expand its base to other states now.
AAP, after sweeping February 20 Punjab elections with a historic three-fourth majority secured by any individual party in Punjab’s electoral history, is now eyeing to grab the power in the neighbouring hill state — which is set to go to polls by the year end. The elections in Himachal are slated to be held in November-December.
The major decision by the AAP Government, so far — likely to benefit 62.25 lakh of the total 73.80 lakh domestic consumers in state while adding a subsidy burden of around Rs 1,502 crore annually on the state exchequer — was taken despite the weak financial position of the state power utility, Punjab State Power Corporation Limited (PSPCL), coupled with state’s outstanding debt of Rs three lakh crore.
Currently, the state’s total power subsidy bill accounts for Rs 12,000 crore annually, of which nearly Rs 4,000 crore subsidised power is provided to the domestic consumers under various categories. With the implementation of “300 free units” scheme, the government’s subsidy bill for domestic sector, as per rough estimates, is expected to cross Rs 5,500 crore per annum.
“As of now, the domestic consumers are getting power subsidy of Rs 4000 crore every year. These include Rs 1,657 crore for 21.83 lakh SC, BC, and BPL families, freedom fighters, who are getting first 200 units free every month. Now, they will also get 300 units free,” a senior government official told The Pioneer.
The official added that about Rs 2,341 crore power subsidy is also provided to more than 64 lakh domestic consumers having load up to seven KW. Notably, the previous Congress-led Government, under Chief Minister Charanjit Singh Channi, had slashed the power bills by Rs three per unit in various slabs from November 1, 2021, and AAP Government had decided to continue the subsidy.
Considering the same, the Punjab’s bureaucracy was of the view that the ‘300 free power units’ scheme should be postponed for now, while the AAP leadership wanted the decision to be implemented at the earliest. Besides several meetings at the state level, AAP chief and Delhi Chief Minister Kejriwal held a meeting of Punjab top officers — including Chief Secretary Anirudh Tewari, Power Secretary Dilip Kumar, and PSPCL chairman-cum-managing director (CMD) Baldev Sran — earlier this week in the absence of Bhagwant Mann and the state Power Minister Harbhajan Singh.
Even as the Opposition targeted AAP and Punjab Chief Minister in particular, Mann once again justified the decision on Saturday saying that he would send his officers to other states if it would benefit Punjab.
“Kejriwal Government in Delhi has provided free power to the people, and we have sought his guidance in taking this decision,” said Mann on Saturday while announcing the decision via a video message. Before the formal announcement, the AAP Government has released advertisements in newspapers on the completion of one-month in power and declaring that 300 free power units would be provided from July 1 onwards.
Chief Minister Mann, in his video message, also made it clear that all the SC, BC, BPL and freedom fighters’ families will now get the first 300 units per month free, instead of the first 200. “These consumers will be charged only for the additional units, that is, if they consume 645 units for two months, they will be billed only for 45 units,” he clarified.
At the same time, he made it clear that for the other categories, they will be charged the full bill in case the consumption is more than 600 units bimonthly (most bills are issued bimonthly).
The major issue before the AAP government is from where the scheme will be funded. AAP leader, who did not wish to be named, said that currently, the Government is eyeing money from the excise and mining departments. “All departments have been asked to focus on income, like transport, and check pilferage,” added AAP leader.
Mann, addressing the newly-recruited officers or employees of Punjab State Transmission Corporation (PSTCL) at a function organized on the occasion of the foundation day of the PSTCL on Saturday at Sector-35 Municipal Bhawan, said despite being the power producing state, Punjab was not still able to provide free or cheaper electricity to the people due to the wrong agreements done by the previous governments.
“There are still some hiccups in providing cheaper and free electricity to the people such as transmission losses, coal issues, and some legal issues which his government is working to sort out,” he added.
He said that his government is committed to provide the cheapest electricity to the commercial and industrial sectors in the country which would also be fulfilled.
Hailing the decision, AAP MLA from Sunam Aman Arora said that the Government has taken the biggest decision in the power sector of our country today. “Till date, no government in the country has announced to provide free electricity to such a large population without conditions. With this decision, 80 percent families of Punjab will get free electricity facility,” he said.
Arora said that there are about 73 lakh household electricity users in Punjab, out of which about 61 lakh consumers will get direct benefit of this decision. “Chief Minister Bhagwant Mann is living up to the expectations of the people of Punjab. AAP will fulfil every promise and guarantee given to the people of Punjab and will make Punjab happy and prosperous again,” he said.
On the apprehension that the general and some other sections of the people may not get the full benefit of this scheme, Arora cleared that this decision has been taken keeping in mind that there should be no wastage or misuse of electricity.

 

“If electricity becomes completely free, then it can be unnecessarily used and wasted, which will create a crisis for the country's energy system. Only a few percent of the people may not get the full benefit of this scheme due to ACs, cooler etc during three-four months of summer, but for the remaining eight-nine months, they will also be covered under this scheme,” he said.


AAP FULFILLS ‘FIRST’ GUARANTEE

·      300 units free power from July 1 every month
·      600 units free power to be given in two months
·      Agriculture subsidy to continue
·      No hike in rates of industrial and commercial power connections
·      No electricity bill for families having load up to 2 KW till Dec 31, 2021
·      SC, BC, BPL, freedom fighters to now get 300 units free, instead of 200 units
·      Consumers to pay full bill if consumption is over 600 units bimonthly, except SC, BC, BPL families who will have to pay only “above units” consumed

 

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