The Punjab Chief Minister (CM) Amarinder Singh on Wednesday ruled out any rollback on the decision to provide power to the industry at the subsidised rate of Rs 5 per unit. The CM said the decision had already been taken by his government and ratified by the Cabinet while setting at rest all apprehensions of any change in this regard.
The CM said the notification on the industrial power subsidy had been slightly delayed only to give the Department of Industries the time to resolve some critical issues faced by the industry on account of the newly imposed fixed power tariff. The CM stated that the two-part power tariff structure announced by Punjab State Electricity Regulatory Commission (PSERC) would prevent the benefits of the subsidy from reaching the bulk industrial power consumers, such as the steel industry and the large units with co-generation capacities.
He added 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, Amarinder pointed out that large units 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, said the CM. Taking cognisance the problems faced by the industry, the CM said he had directed the Chief Secretary, Additional Chief Secretary (Power), Chairman Punjab State Power Corporation Limited (PSPCL) and Secretary Industries to work out the modalities, in consultation with representatives of industry, to resolve the matter.
“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”, the CM said. 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 Amarinder Singh.
The CM also said the industrial subsidy was a sacrosanct promise of his government and a necessity to boost industrial development, to which he was committed. “How can the government even think of retracting a promise which is so crucial to bringing the state back on the path of industrial and economic revival?” he asked.