Punjab Power Department to bear Rs 748 cr subsidy to industry

Punjab Chief Minister Amarinder Singh on Thursday issued formal orders to the state Power Department to bear the Rs 748 crore power subsidy for the industry for 2017-18, with variable cost to be fixed at Rs 5 per unit.

The order has been passed in line with the promise made by the Congress government, led by Amarinder Singh, to provide power to industry at a subsidized rate of Rs 5 per unit.

"Following the orders, the Deputy Secretary, Power, has written to Punjab State Electricity Regulatory Commission (PSERC), intimating the government's decision to bear the said subsidy," a state government spokesperson said here. As per the letter, the state government shall bear 50 per cent financial implication of the increased tariff retrospectively, from April to October 2017, for Medium Supply and Large Supply industrial category. This amounts to Rs 300 crore.

The balance will be borne by the industry, which will deposit the arrears in 12 equal interest-free monthly installments, the spokesperson said.

--IANS

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