Punjab withdraws previous government’s decision to provide Rs 3 per unit power subsidy to consumers | India News

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

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

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

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

The decision to revoke the previous government’s decision was taken at the Cabinet meeting chaired by Prime Minister Bhagwant Mann here.

Speaking to the media after the cabinet meeting, Cheema said the previous government had reduced power tariffs by Rs 3 per unit for domestic consumers with a load of up to 7 kW. “We have withdrawn that decision today,” he said.

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

Asked how much the state government will earn after the revocation of this decision, Cheema said it will generate between Rs 1,500-1,800 crore in revenue.

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

Instead, people would be encouraged to consume electricity rationally, he added.

“Why do (domestic consumers) consume more than 600 appliances? If they reduce the use of air conditioning and other electronic appliances, their electricity consumption will be less than 600 appliances (in two months). We have tried to benefit them and not punish them,” he said.

Punjab Congress chief Amrinder Singh Raja Warring has slammed the Bhagwant Mann government for withdrawing the subsidised electricity tariff, saying it is a “blatant betrayal” of the common people, who are already grappling with the ever-rising cost of living.

“The AAP government’s decision to increase electricity tariff 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 sharp increase in additional consumption creates a substantial financial burden on households. The illusion of relief offered by the first free units is quickly shattered as families and businesses are forced to pay exorbitant rates beyond that limit,” he added.

He further said that the AAP government, under the guise of increasing state revenue, has been “relentlessly” imposing financial burden on the people.
Just two weeks ago, they increased the tax on motor vehicles, putting the cost of cars and two-wheelers beyond the reach of the middle class and economically weaker sections, he said.

Opposition leader Partap Singh Bajwa, while condemning the government’s move, said, “Ever since the AAP came to power in the state, it has been carrying out its routine activities on borrowed funds. The outstanding debt in Punjab is estimated to touch Rs 3.74 trillion by the end of fiscal year 2024-25. The way the AAP government is handling the economy shows that Punjab has been rapidly moving towards bankruptcy during the 2.5 years of AAP rule.”

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