Citing severe cash deficit and adverse impact on finances of the State Discoms amid Covid-19 lockdown, Punjab Chief Minister Capt Amarinder Singh on Wednesday asked Prime Minister Narendra Modi for a financial package for power sector, while suggesting a slew of measures to rescue PSPCL and other from the current crisis and ensure that consumers are not harassed or hassled in these difficult times.
Power Finance Corporation (PFC), Rural Electrification Corporation (REC) Limited and other Financial Institutions should provide loans to power sector at reduced rates of six percent per annum for bridging revenue gap, suggested Capt Amarinder.
He also recommended extension of RBI moratorium on repayment of outstanding loans and interest from the current three to at least six months. In addition, the applicable interest rate on deferred payment should be considered at concessional rate, he suggested.
Further, the advice issued by Union Ministry of Power to Central Public Sector Undertakings (CPSUs), power generation companies (Gencos), or power transmission companies (Transcos) not to use coercive measures to recover dues and continue supply or transmission of electricity being an essential service should be extended to at least six months.
Among other suggestions made by the Chief Minister are reduction in coal prices, waiver of GST levied on coal cost and Railway freight for 2020-21 financial year, waiver of capacity or fixed charges payable on account of capacity not scheduled due to load crash as well as 50 percent reduction in Inter State Transmission Charges for 2020-21 financial year, or at least the next six months.
The Chief Minister further called for maximum limit of six percent per annum on late payment surcharge on delayed payments to Generators and Transmission licensees for the year 2020-21.
In a letter to the Prime Minister, he also sought reduction in renewable purchase obligation (RPO) for previous and current fiscal, and withdrawal of must-run status for Renewable Energy (RE) power projects for 2020-21 financial year, or at least the next six months, so that low-cost power from alternate sources can be supplied.
Alternatively, all renewable energy power generators may be given option to supply power at weighted average variable cost of power purchased from conventional sources of power during the month, he added.
Asserting that his Government was committed to providing uninterrupted 24x7 power supply to the people of Punjab, especially to all Healthcare Institutions, Captain Amarinder said the entire workforce of the power sector is currently mobilized round the clock.
However, due to restrictions imposed to control the spread of Covid-19 pandemic, the communities, business and consumers are facing economic hardship and unable to pay their dues to the State Discom Punjab State Power Corporation Limited (PSPCL).
“This has led to cash deficit and financial hardship for the Discom, impairing its ability to meet daily expenses. At the same time, due to economic hardship, the consumers are seeking relief in electricity tariff,” he observed, stressing that a financial package was urgently needed for continuity of this essential service and for the benefit of consumers.