Explained: What impact will Arvind Kejriwal’s announcement of 300 free units of power have on PSPCL?

According to the data, Punjab government is already providing free electricity to over 1.5 lac tube-wells for irrigation purposes

Punjab-Assembly-Elections-2022 CM-Capt-Amarinder-Singh AAP

With the Punjab Assembly Elections around the corner, Aam Aadmi Party supremo and Delhi Chief Minister Arvind Kejriwal has commenced party promotional camps to make space for themselves in the state.

AAP convener Kejriwal on Tuesday reached Chandigarh on Tuesday where he announced that his party will provide 300 units of free power to every household in the state.

He has also assured uninterrupted round-the-clock power supply and waiver of pending electricity bills, if the party comes into power in the state in 2022.

According to the data, Punjab government is already providing free electricity to over 1.5 lac tube-wells for irrigation purposes. Apart from this, 200 free units of power are being given to the Scheduled Castes, Backwards Classes, Below Poverty Line (BPL) families, families of freedom fighters, etc., which means each month Punjab govt provides a subsidy of around 800-900 crore on power.

However according to the sources of PSPCL, if Arvind Kejriwal wins the upcoming elections in the state with his free power masterstroke then the govt subsidy would escalate to 1200-1300 crore from 10600 crores.

This year, the government has already cleared the subsidy amount of 10600 crores to the power corporation to distribute free electricity to the aforementioned sectors/households.

The additional cost of the subsidy will have a serious outcome for the Punjab State Power Corporation Limited (PSPCL) as it will be pushed deeper into the trap of fiscal deficit.

Also Read: Kejriwal’s masterstroke ahead of polls: 300 units of free power to every household in Punjab

Consequently, to recover the loss faced by the government for giving free power will have an extreme impact on the pocket of the Punjabis. In a way or another, the state government will find a way to squeeze the budget of the people by collecting more taxes to double up the revenue.

Pertinently, the similar model is prevailing in Delhi where 200 units are being given free to every household, however, those who utilize more than the stipulated units have to pay the entire amount.

Arvind Kejriwal also clarified that all existing electricity schemes will remain to continue in Punjab and Punjabis will get 300 units per month free. The existing beneficiaries that were getting 200 free units per month will now get 300 free units per month.

However, if these beneficiaries will consume 350 units then they will have to pay for the 50 overhead units.

The first 300 units will be totally free for the consumers. All other non-beneficiaries who do not receive any electricity benefits currently will get 300 free units per month. If this category consumes more than 300 units per month, then they will have to pay for the whole consumption.


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