Photo Source: ANI
Pending dues by Govt adversely impacting financial health of PSPCL: PSEB Engineers’ Association
Babushahi Bureau
Monday, December 23, 2024: PSEB Engineers’ Association in a letter to chief minister Punjab has expressed grave concern that pending dues by state government is adversely impacting the financial health of the PSPCL.
The letter mentions that outstanding dues towards unpaid subsidy bills by the Government amount to current year subsidy bill outstanding of Rs.4,500 crores, the past subsidy dues of Rs.5,500 crores and unpaid electricity bills from various government departments stand at Rs.3,600 crores. These dues totalling Rs.13,600 crores.
"Punjab government has paid subsidy of Rs.12758 crores to PSPCL till December 15 and this includes RS.6524 crores for free agriculture power,Rs.4708 crores for domestic consumers and Rs.1526 crores for industrial consumers. The four big defaulters are the water supply and sanitation department, Local government ,Rural dzevelopment and Panchayat and Health department. These four departments cumulatively owe Rs about 90% of the total defaulting amount," the association stated.
Ajay Pal Singh Atwal said that this has created a severe cash flow crunch for the power corporation, significantly affecting its ability to function effectively.
This delay in payments not only exacerbates operational challenges but also compounds financial losses, which will ultimately result in higher power costs for consumers across the state.
Addressing these concerns promptly will not only stabilise the PSPCL’s finances but also prevent further strain on the state's energy security.
The Association has demanded that necessary instructions be issued to the finance department for immediate release of current financial year pending subsidy bill to the PSPCL and devise a mechanism on urgent basis for clearing the outstanding electricity bills of Rs 3,600 Cr of various government departments.
A retired engineer said that the financial survival and better performance of the PSPCL hinges on the clearance of dues of defaulting government departments and timely payment of subsidy .