Punjab CM Channi makes big announcement, slashes power rates by Rs 3

Punjab Chief Minister Charanjit Singh Channi today announced to reduce the power tariff to domestic sector consumers having connected load upto 7 KW by Rs.3 per unit.
 
Punjab CM has slashed power tariff by Rs 3 per unit for all slabs. He said this is for the first time 100 units consumer will now pay Rs 1.19 per unit instead of Rs 4.19. 

Also, taking a dig at Delhi CM Arvind Kejriwal's poll promise of free electricity, Channi said that his government's survey suggested people wanted cheap, and not free power.

He said nearly 69 lakh consumers will be benefitted and state government would bear additional annual financial burden of Rs 3316 cr on state exchequer.

He further announced 11 percent hike in Dearness Allowance (DA) for state government employees. ₹ 440 crore will be allotted for this, he added.
 
Earlier on Saturday, Chief Minister Charanjit Singh Channi approved the PSPCL’s proposal to annul GVK Goindwal Sahib (2x270 MW) Power Purchase Agreement. Following this, the Punjab State Power Corporation Limited (PSPCL) has issued the company a termination notice.
 
The Channi government's move reiterates its firm commitment to delivering quality and uninterrupted power service to consumers at an affordable cost.
 
Nearly a month ago, Punjab suffered a major power crisis after witnessing huge coal shortages. This led to frequent power cuts in the state, disrupting the daily lives of people along with affecting agricultural activities in the state. Angry over unscheduled power cuts in the state due to the coal crisis, farmers had staged protests, demanding uninterrupted electricity.
 
Earlier, during Captain Amarinder Singh’s regime, the Punjab Congress head had advocated for uninterrupted power supply and faulty PPAs to be annulled.
 
Sidhu then tweeted, “Faulty PPAs have cost People of Punjab thousands of crore! Punjab has paid 3200 Crore just as Coal-washing charges due to faulty replies to pre-bid queries before signing PPAs. Private Plants keep finding loopholes to file litigation that has cost Punjab 25,000 Crore already.”
 
Sidhu stated that PPA's signed during Badal's rule binds Punjab to pay fixed charges for 100% production, whereas other States pay No more than 80%.
 
"If these fixed charges being paid to Private Power Plants under PPAs were not paid, it would directly & immediately decrease the cost of Power in Punjab by Rs. 1.20 per unit,” claimed Sidhu.
 
Punjab assembly elections are just months away and oppositions such as SAD, AAP, and even Capt Amarinder-BJP alliance are gearing up for polls. Amid the strengthing rivals, the Congress leaders are focusing on fulfilling former CM Capt Amarinder’s “unprioritized” poll promises.
 
One of Capt’s key poll promises that led to the party’s win in state was the reduction in tariff.

Meanwhile, CM Channi said that inflated power bills was major issue for Punjab residents and they have been seeking relief in power rate. We are going to resolve this and have decided in today's cabinet regarding this, he added. 
 
The new rates are as follows: