Chandigarh: Punjab may not go for Centre's financial restructuring scheme for power utility under the present framework as state authorities on Tuesday sought increase in the Centre's grant and relaxation in "rigid" conditions for implementation.

"What we have felt (after going through the financial restructuring scheme) that under the existing shape, it is not
acceptable to us. "Unless Centre brings some relaxation in strict conditions for implementation of the scheme and raises financial outlay, it cannot be implemented," a senior functionary in the state Finance Department told reporters.

A meeting of senior officials of Punjab's Power and Finance Departments was held to take a call on the financial restructuring scheme for implementation in the state.

The state government has raised an objection to one of the conditions, mentioned in the "bail out" scheme which mandates for preparation of roadmap for 100 percent metering of rural feeders and giving power feeders to private companies and franchisees for reducing transmission and distribution losses.

"What is the rationale in allocating power fedders to private companies when (state owned) Punjab State Power Corporation Limited can reduce T&D losses on its own," he said. He further said the grant of Rs 1,250 crore after implementing the scheme is not sufficient for the state. "We have demanded that incentive to the tune of 25 percent of principal repayment on the liability (taken over by the state) should also be raised to 50 percent," he said.
Official further stressed that the state owned PSPCL had started showing visible signs in the improvement of financial position.


Latest News from Punjab News desk