Punjab Seb Losses May Rise By Rs 494.6cr

The Punjab governments decision to provide free electricity to farmers will worsen the financial position of the state electricity board (SEB). Commercial losses of the board will jump to Rs 865.56 crore during the next financial year, up Rs 494.6 crore from the current years figure of Rs 370.96 crore.

The annual financial statement of the SEB for 1997-98, tabled in Assembly recently, pointed out that the commercial losses of the board would have been restricted to Rs 658.96 crore during 1997-98, had the state government not offered free electricity to farmers.

The state government has decided to provide a grant-in-aid, amounting to Rs 226 crore, to the SEB to offset the loss on account of the decision to give free power to farmers.

 

The SEBs financial report has also pointed out that the net deficit in internal resources would be met by improving net efficiency and a tariff revision.

The average cost of supply power by the SEB is Rs 1.91 per unit and the average revenue earned by it from all categories of consumers, excluding farmers, is Rs 2.06 per unit.

The SEB has deferred payment of Rs 394.43 crore, due as interest on loans from the state government. The board proposes to have a plan outlay of Rs 687 crore for the coming financial year. This excludes a provision for the Ranjit Sagar Dam, which has been awaiting completion for many years.