Chandigarh, May 28 (Indus Prism) Punjab Chief Minister Amarinder Singh on Friday said the cut, ranging from 50 paise to Re 1 per unit, in domestic power tariff will provide major relief to domestic consumers, especially the poor, who are already reeling under financial problems due to the Covid pandemic.
This is the second year in a row that the power tariff for domestic consumption in the state has been reduced. Domestic power rates had been cut down by 50 paise per unit by the regulator in 2020 too.
Noting that the decision of the Punjab State Electricity Regulatory Commission (PSERC) to reduce the domestic tariff would bring relief to the tune of Rs 682 crore for 69 lakh domestic consumers in the state, the Chief Minister also hailed the decision of the regulator not to increase tariff for commercial consumers as well as small and medium industry amid the Covid pandemic.
Even the hike in tariff for industrial users was quite marginal, he pointed out, adding that this would also come as a relief to industry, which had also been severely impacted by the lockdowns and demand crisis as a result of the unprecedented contagion outbreak.
The industry has been getting power subsidy from the state government since 2017, when the tariff was reduced to Rs 5 per unit as variable cost.
Soon after coming to power, the Amarinder Singh government, in line with its poll promise, had announced its decision to subsidise power for the industry.
The government has given a total industrial power subsidy of Rs 4,911 crore during 2017-21, with the same being availed by around 42,000 medium and large industrial consumers, along with 104,000 small industrial consumers.
The subsidy provide to industry by the state government for FY2021-22 will be to the tune of Rs 1,900 crore.