In 5 yrs,power corp expenses up by 109%,generation by 15%

Heres a reality check for the Punjab State Power Corporation Limited.

Heres a reality check for the Punjab State Power Corporation Limited (PSPCL). In the past five years,the Powercoms expenses jumped by a whopping 109 % even as its power generation capacity grew by a mere 15%. The facts came to fore after the Punjab State Electricity Regulatory Commission (PSERC) approved the data for 2007-08 and 2012-13 which the PSPCL presented.

The figures are a shocker,coming just days after the Powercom recently effected a 12 per cent hike apart from cutting supply to industry.

As per figures presented by PSPCL,in 2007-08,the total generation plan was of 22,806 million units (MU) while in 2012-13,Powercom has proposed to generate 26,341 MU power a figure approved by PSERC.

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Powercoms total loans in 2007-08 were pegged at Rs 6,406 crore,which has shot up to Rs 8,662 crore. Not only this,even the subsidy bill of the state government has increased from Rs 2,548 crore to Rs 5784 crore in the last five years. The amount of cross subsidy has also went up from Rs 1,171 crore to Rs 1,492 crore during the period.

Salaries and subsidies are eating up a major share of PSPCLs budget. To meet expenses,the power regulatory body has only one solution – increase the tariff, Badish Jindal,president,Federation of Punjab Small Industries association (FOPSIA),said.

The cost incurred on employees in the year 2007-08 was Rs 1,665 crore while the interest on loans was Rs 693 crore. Now,the figures approved by the PSERC show that the cost incurred on employees has shot up by more than double to Rs 3,340 crore and interest on loans is now pegged as Rs 1,580 crore, Jindal added.

The industry,which is facing the brunt of the hike and power cuts,will present a comparative data chart to Chief Minister Parkash Singh Badal and seek his reply,the FOPSIA president said.

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