The Indian Army's request for 300 units of free electricity per month for its personnel stationed in Punjab has thrown the State Government into a financial quandary. With over one lakh army personnel stationed in various parts of the State, the demand poses a significant challenge to an already-strained fiscal situation.

The Army's South Western Command has made the request, citing the 300-unit free electricity scheme for domestic consumers implemented by the Aam Aadmi Party (AAP) – led Punjab Government since July 2022. However, the benefit has not been extended to military personnel and defence civilians residing in cantonments and military stations in Punjab. 

The demand for free power was articulated in a letter from the South Western Command to the Punjab Government, arguing that the scheme should include all military personnel and their families living in cantonment areas. While Punjab offers free power to domestic users, military personnel, who are also state residents, have been excluded, even though they live in residential quarters.

The Army highlighted that other states, such as Delhi, provide similar electricity subsidies to their stationed soldiers, and Punjab should follow suit to ensure parity. This plea has triggered internal discussions within the State Government, which is grappling with an already burgeoning electricity subsidy bill. 

The request comes at a time when Punjab’s power sector is facing severe financial constraints. With the State Government already struggling to pay a power subsidy bill of approximately Rs 9,076 crore to the Punjab State Power Corporation Limited (PSPCL), the addition of military cantonments to the list of free electricity recipients could exacerbate the state’s fiscal woes.

The free power scheme for domestic consumers has already led to a sharp increase in electricity consumption, with new connections rising by 80,000 since the scheme’s launch in 2022. The State Government’s power subsidy expenditure has surged as a result, with its total subsidy bill increasing by Rs 1,550 crore compared to the previous fiscal year.

A senior government official explained that military stations and cantonments receive bulk electricity supply, which is different from the individual domestic consumers who benefit from subsidies. This makes extending the free electricity scheme to military personnel challenging, as bulk consumers are not eligible for such schemes.

While the Army’s request is currently under review, the financial implications for the state are significant, especially since the government is already struggling to meet its subsidy obligations. As of November 2023, the Punjab Government had only paid Rs 4,508.2 crore towards the total Rs 20,477 crore subsidy due to PSPCL, with the remainder still pending. 

If the Punjab Government agrees to extend the subsidy to the military personnel, it will be required to provide free electricity to soldiers residing in cantonments and military stations across the state, including those in Jalandhar, Ferozepur, Patiala, Amritsar, and Pathankot. This would not only increase the state’s subsidy burden but also put additional pressure on the already financially struggling PSPCL, which has been grappling with high losses and delayed payments. 

The financial toll of the free electricity scheme has already become apparent. The number of new electricity connections has risen dramatically since the scheme’s implementation, with many households reportedly splitting their connections to take advantage of the 300-unit free power. This surge in connections has contributed to an increase in overall power consumption, placing additional strain on the state’s already stretched energy resources.