Enggs warn PSEB any roll back

PATIALA, July 24: The Punjab State Electricity Board engineers today cautioned the government and the board not to succumb to the pressur...

PATIALA, July 24: The Punjab State Electricity Board engineers today cautioned the government and the board not to succumb to the pressure of the industrial lobby to reduce the tariff hike proposed by the board.

The tariff hike of PSEB is a case of “too little too late” and any roll back would set the clock back by several years, slow down the development of power sector, pushing PSEB towards ultimate bankruptcy.

As per the budget estimate for the year 1998-99, the revenue receipt at unrevised rates is expected to be approximately Rs 3,158 crore against revenue expenditure of Rs 3,920 crore which leaves a revenue deficit of Rs 762 crore. Taking depreciation, interest on institutional loans etc. into account the commercial loss for 1998-99 is expected to cross Rs 1,000 crore.

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The present tariff hike is expected to earn just just Rs 600 crore during 1998-99, leaving a deficit of over Rs 400 crore. To achieve this rate of return, a further hike of minimum 15 per cent is required. Even a small roll back of say six to seven percent would result in a cash loss of more than Rs 200 crore annually.

The association also expressed its deep concern at the failure of the government to compensate PSEB in cash for the loss of revenue on account of free power to agriculture sector. The cash loss on this account is approximately 275 crore per annum and at the time of making power supply free for agriculture sector the government had assured that board would be compensated in cash but no efforts have been made in this respect so far.