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This is an archive article published on February 22, 2008

Locked in tussle with power regulator, Punjab to move SC

As the Punjab State Electricity Regulatory Commission’s ultimatum for a power tariff hike in the state draws near...

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As the Punjab State Electricity Regulatory Commission’s ultimatum for a power tariff hike in the state draws near, the SAD(B)-BJP Government is poised to move the Supreme Court against its order next week. Attorneys in New Delhi have been alerted, and the state hopes that its arguments will lead to the court staying the directions of the regulatory commission. If the Government fails to secure a stay order, power tariff hike from March 1 appears imminent. Finance Secretary D S Kalha confirmed that the state will challenge the order before the Supreme Court.

The state Government had the option of moving the Appellate authority against the order, but this would have been merely an exercise to buy time, given the fact that the orders by the state commission were given on the directions of the Appellate Tribunal. “The grounds on which the order will be challenged are being deliberated upon,” a Delhi-based advocate told The Indian Express on Friday.

Sources said the state Government is likely to take the plea that free power and subsidies existed even before the formation of the state commission. Also, Punjab Chief Secretary’s February 8 letter spells out the state Government’s intention to clear the pending subsidy bills as early as possible. Although top officials deny it, sources said the Punjab Government released a subsidy of Rs 195 crore after the regulator’s order this month.

Another ground that’s being deliberated upon is that Punjab had given a whopping Rs 3,000-crore loan to the Punjab State Electricity Board long ago which could have been put to use before issuing the order.

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