The financial burden on the Punjab State Power Corporation Limited (Pspcl) has increased with recent Punjab Government announcements of subsidised/free power ahead of the Vidhan Sabha polls. The 2021-22 expenditure is estimated to reach around Rs 12,245 crore, up from Rs 10,621 crore.
However, in its tariff petition for the year 2022-23, the PSPCL has projected a gap of Rs 125 crore only, in view of the poll season, claim experts.
As per the annual revenue requirement (ARR) filed by the PSPCL, the gap of previous years amounts to Rs 1,611 crore thus making a total revenue gap of Rs 1,912 crore. The total ARR has been worked out Rs 36,484 crore and the revenue receipt on the basis of present approved tariff has been worked out as Rs 36,702 crore.
As the power regulator always reduces the expenditure proposed by the PSPCL, there may not be any hike in power rates, despite the government reducing the prices. As per the ARR, the major expenditure is for power purchase. The purchase has been estimated at Rs 24,910 crore, including interstate transmission charges.
The other major expenditure is of employees salary and pensions and this has been worked out at Rs 5,552 crore. However, in order to subdue the ARR in the election year, the PSPCL has not included any payments to employees against pay revisions. As per information, against pay revision, the total arrears will amount to about Rs 3,000-3,500 crore, of which around Rs 1,000 crore are payable in 2021-22 and balance in the coming years.