Punjab Withdraws Previous Cong Govt's Decision Of Rs 3 Per Unit Power Subsidy For Consumers

Punjab's Cabinet withdrew the Rs 3 per unit power subsidy, saving Rs 1,500-1,800 crore annually.

The Punjab Cabinet on Thursday withdrew the previous Congress government's decision to provide a power subsidy of Rs 3 per unit for domestic consumers, which will yield Rs 1,500-1,800 crore per annum to the state exchequer.

However, Punjab Finance Minister Harpal Singh Cheema said 300 units of free electricity per month for the domestic category will continue.

Meanwhile, the opposition parties condemned the AAP government's move to withdraw power subsidy, saying it will put an additional burden on the electricity consumers.

In November 2021, the then Charanjit Singh Channi government slashed the power tariff by Rs 3 per unit for domestic consumers, having a connected load of up to 7 kW (kilowatt).

The decision to withdraw the previous government's decision was taken in the Cabinet meeting chaired by Chief Minister Bhagwant Mann here.

Addressing the media after the cabinet meeting, Cheema said the previous government had reduced the power rates by Rs 3 per unit for domestic consumers, having up to 7 kW load. "We withdrew that decision today," he said.

But 300 units of free electricity, started by the AAP government, will continue, he added.

Asked how much the state government will earn following the withdrawal of this decision, Cheema said it will lead to Rs 1,500-1,800 crore of revenue.

On why the state government gave a shock to those who consume over 600 units in two months and pay their electricity bills honestly, Cheema said it was not a shock.

Rather, people would be encouraged to judicious electricity consumption, he added.

"Why do they (domestic consumers) use over 600 units? If they reduce the use of air conditioners and other electronic gadgets, then their electricity consumption will be below 600 units (in two months). We have tried to benefit them and not to punish them," he said.

Punjab Congress chief Amrinder Singh Raja Warring hit out at the Bhagwant Mann government for withdrawing the subsidised power tariff, saying it is a "blatant betrayal" of the common people, who are already grappling with the ever-increasing cost of living.

"The AAP government's decision to raise electricity rates by Rs 3 per unit is nothing short of outrageous," Warring said.

"While they continue to boast about providing the first 300 units of electricity for free, this steep hike for additional consumption creates a substantial financial burden on households. The illusion of relief offered by the initial free units is quickly shattered as families and businesses are forced to pay exorbitant rates beyond this limit," he added.

He further said the AAP government, under the guise of boosting state revenue, has been "relentlessly" imposing a financial burden on people.
Merely two weeks ago, they increased the motor vehicle tax, pushing the cost of cars and two-wheelers out of reach for the middle class and economically weaker sections, he said.

Leader of Opposition Partap Singh Bajwa, while condemning the move of the government, said, "Ever since the AAP assumed power in the state, it has been running its routine activities with the borrowed funds. The outstanding debt in Punjab is estimated to touch Rs 3.74 lakh crore by the end of the 2024-25 fiscal year. The way the AAP government is handling the economy demonstrates that Punjab has been swiftly moving towards bankruptcy under the 2.5 years of the AAP regime".

Shiromani Akali Dal leader Bikram Majithia said the withdrawal of the power subsidy, which allowed consumers to have loads of up to 7 kilowatts, would affect lakhs of consumers.