PSPCL to borrow Rs 500 crore for power purchase
Patiala: Punjab State Power Corporation Limited (PSPCL) is facing serious financial crunch due to the non-payment of subsidies by the state government. PSPCL has sought an additional loan of Rs 500 crore to purchase power during the paddy season.
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As per the report, the total subsidy bill of Rs 20,5000 crore was to be paid by March 31. Out of this, about Rs 7,100 crore is due. For consumers with power connections up to 7 KW, the rate was reduced by Rs 3 per unit, which has been added to the subsidy bill. After incurring financial losses, PSPCL has decided to take an additional loan of Rs.500 crore for which letters have already been sent to various state-owned and private banks and financial institutions.
In addition, under the Uday scheme, the Punjab government had issued bonds to PSPCL to repay a debt of over Rs 34,000 crore. PSPCL pays no return on equity for these bonds but pays interest of about Rs. 1400 crore for the remaining loan amount, which is added to the cost of electricity and is collected from the consumers of the state.
Despite many efforts being made by the state government and PSPCL, the coal reserves in the thermal plants of the state have been steadily declining.
PSPCL will take a loan of Rs 500 crore for power purchase whereas on March 1 this year, the state's thermals had an average stock of 12.6 days, which has come down to 8.7 days on April 6. The stock in Lehra fell from 21 days to 12 days, while in Ropar it fell from 26 days to 13 days.
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-PTC News
