Govt to release subsidy by Feb 29

CHANDIGARH: Punjab government has decided to release the entire subsidy due to Punjab State Electricity Board (PSEB) by February 29 as directed by the Punjab State Electricity Regulatory Authority (PSERC) in its order of February 15 on a petition of the PSEB Engineers' Association.
However, the embarrassed government has not taken the commission's hurried and unprecedented orders kindly.Though the government is committed to release the subsidy and abide by the orders, it would rather not use dilatory tactics this time and instead hit the commission on other issues.
The PSERC had, in no uncertain terms, ordered the government to pay the subsidy arrears by the deadline and, if it failed, directed the board to charge from March 1, 2008 onwards the tariff determined in the tariff order for the year 2007-08, which implied that the board should discontinue free power to farm sector or subsidised power to SC and BPL families.
When asked why the commission preferred the harsh route, its chairmam Jai Singh Gill said, ���The commission's verdict is clear and under the law of the land".
The government too found no fault with the commission's orders but it was certainly caught unawares when the move hit the headlines on February 18. The commission had given its verdict ex-parte as the government had gone unrepresented.
���Instead of regulating the board, the commission has started regulating the government," said an officer, obviously anguished at the hurry with which the commission had acted. For the first time, the commission has insisted that the subsidy be paid in an advance be a quarter, he said, adding that the government owed only Rs 600 crore to the PSEB, for which the commission could have waited, considering government's solemn assurance to release it by March 31.
The government owed only Rs 1,078 crore, out of over Rs 400 crore were related to previous year. ���If the commission can wait for Rs 400 crore for over a year, why did it fail to accommodate the government till March 31, knowing its financial constraints," argued a senior Akali leader, almost referring to the imputing motives to the commission.
Instead, the commission should have intervened to check internal inefficiency, indiscipline and corruption in the board that was leading to heavy losses, an official said.
He added that the focus should have been on cutting high transmission and distribution (T&D) losses or reprimanding the board for purchasing power at unusually high prices compared to neighbouring states and purchasing it in far excess of permitted level of Rs 2800 crore.
Also, the government was upset over commission's earlier observations on government loan and interest thereon, stating that it was a bilateral issue where the commission had no locus standi to intervene.
The PSEB is committed to pay an interest of Rs 48 crore per month to the government but the commission arbitrarily disallowed it and exceeded its brief, argued officials, adding that the government would move appropriate forum soon against the commission decision on government loan and interests.