Domestic power tariff cut by Rs 3 per unit in Punjab; 11 per cent increase in DA for state govt employees

Announcing a bonanza to the people on Diwali, the Punjab government on Monday decided to reduce the power tariff for domestic sector consumers having a connected load up to 7 KW by Rs.3 per unit. Apart from this, the government also announced an 11 per cent increase in Dearness Allowance (DA) for state government employees.

The decisions were taken by the Punjab Cabinet under the leadership of Chief Minister Charanjit Singh Channi three days ahead of Diwali.

Addressing media persons soon after the cabinet meeting, Channi said Rs 440 crore had been earmarked for release every month to pay the DA. As 11 per cent of the total 14 per cent (3 percent already granted), the DA will be released in installments, he said.

Channi said that 69 lakh out of 71.75 lakh domestic consumers will benefit after slashing of the electricity tariff. Due to this tariff rationalisation, there will be nearly Rs. 3,316 crore annual financial burden on the state government, he said.

However, the existing free power facility up to 1 KW to SC, OBC and BPL categories will continue, he said. “Our government will reduce the Power Procurement Cost and it will be passed on to the consumers. The Punjab State Power Corporation Limited (PSPCL) has issued a termination of Power Purchase Agreement (PPA) notice to the GVK Thermal Plant at Goindwal Sahib. This costly power will be replaced with low cost power from solar and other sources,” said Channi.

The CM said, "We are reducing power tariff by Rs 3 per unit for domestic consumers. It is a ‘big Diwali gift’ for people, and the decision will come into effect immediately”.

“The government conducted a survey which showed that the people wanted quality, uninterrupted and cheap power instead of free power,” the CM added.

The CM claimed that more PPAs with other power companies, supplying costly power to the state, would be terminated soon, after looking into all legal aspects, to provide power to people at affordable rates.

The PSPCL has issued default notice to Talwandi Sabo Thermal Plant for failure to give proper supply during last paddy season. This penalty amount works out to be in the range of Rs.600-800 crore.