Ruling out rollback on the Punjab Government’s decision to freeze industrial power tariff at Rs 5 per unit, Chief Minister Capt Amarinder Singh on Wednesday clarified that the delay in notification was only because the government was seeking ways to minimise the adverse fixed tariff impact.
Setting at rest all apprehensions of any change in this regard, Capt Amarinder made it clear that the decision had already been taken by the Government and ratified by the Cabinet.
“There will be no rollback on the decision to provide power to the industry at the subsidized rate of Rs five per unit...The notification, on the industrial power subsidy, has been slightly delayed only to give the Department of Industries time to resolve some critical issues faced by the industry on account of the newly imposed fixed power tariff,” said Capt Amarinder.
The two-part power tariff structure announced by Punjab State Electricity Regulatory Commission (PSERC) would prevent the benefits of subsidy from reaching the bulk industrial power consumers, such as steel industry and the large units with co-generation capacities, said the Chief Minister, adding that he had received various representations from the industry seeking government intervention to minimise the adverse effect of the fixed tariff.
Elaborating on the problem, Capt Amarinder pointed out that large units, dependant on co-generation, were forced to install massive external power capacities, and were required to pay fixed charges on the same, even though the usage of power from the grid was minimal.
The plight of the steel industry was somewhat similar, as it required large power capacities for the cold start of its machines, and had to pay fixed tariff on the same even though the bulk consumption was much lower, he said.
Taking cognizance of these, and some other serious problems faced by the industry, the Chief Minister said that he had directed the Chief Secretary, Additional Chief Secretary (Power), PSPCl chairman and Industries Secretary to work out the modalities, in consultation with representatives of industry, to resolve the matter.
He said that the officials have been asked to come out with their recommendations and submit the same to the regulator by the end of the month, so that the benefit of the subsidy can reach the entire industry in the state, with the fixed tariff impact being minimised.
“If the power subsidy, announced by the government, fails to positively impact the industry across the board, the whole purpose of providing the industrial power subsidy would be defeated,” said Capt Amarinder.
The Chief Minister declared, in unequivocal terms, that the industrial subsidy was a sacrosanct promise of his government and a necessity to boost industrial development, to which he was committed.
Dismissing the apprehensions expressed by a section of the industrialists on this count as “totally baseless”, the Chief Minister pointed out that he had been personally engaged with the industry over the past nine months to invite them to invest in Punjab.
“My entire endeavour to woo the industry is based on the promised power tariff subsidy and the ease of business, which is central to the new industrial policy,” he said.
Only a day before, the industrialists have threatened to oppose the Congress party in the December 17 Municipal Corporation elections. Various industrial associations, after a joint meeting on Tuesday, had announced to go on an indefinite strike if their demand to implement promise of Rs five per unit power was not accepted within 15 days.