Punjab power crisis deepens: Engineers urge CM to act fast, warn of Rs 7,800 crore revenue gap
PTC Web Desk: With power cuts being reported across Punjab, the PSEB Engineers Association has urged the state government to take immediate steps to increase electricity generation capacity and protect the state’s economic growth.
In a letter to Punjab Chief Minister Bhagwant Mann, the association said the state’s power sector was once again facing a serious combination of electricity shortage and financial pressure. It warned that the situation could become more difficult in the coming years unless Punjab strengthens its own power generation capacity.
The association said PSPCL had received national recognition after securing A and A-plus ratings among leading power utilities in the country during the last two financial years. It also highlighted the corporation’s handling of the state’s energy requirements during periods of floods and extreme heat.
However, according to the engineers, the situation has now become a matter of concern.
Power shortage affecting key sectors
The association said the emerging shortage was already affecting major consumer groups, including industry, agriculture and households. It particularly raised concerns about the availability of coal at Punjab’s private thermal power plants. According to the association, inadequate fuel availability could further complicate the state’s efforts to meet rising electricity demand.
The engineers said Punjab needed to increase generation within the state instead of depending heavily on electricity purchased from outside.
PSPCL faces financial pressure
The association also pointed to the financial difficulties facing PSPCL. It said delays in the payment of electricity bills by government departments, along with outstanding subsidy payments from the Punjab government, were putting additional pressure on the corporation’s finances.
The association further alleged that expenditure projections in the recent ARR had been kept lower than the actual requirements. It claimed that this resulted in an unreasonable reduction in tariff and added to PSPCL’s financial burden.
According to the letter, PSPCL could face a revenue shortfall of around Rs 7,800 crore during the current financial year when compared with its actual expenditure requirements.
Heavy dependence on costly power purchases
The engineers said Punjab’s own generation capacity falls considerably short of demand during the peak summer months. As a result, PSPCL has to depend heavily on electricity purchased from power exchanges, often at higher prices.
The association's general secretary, Ajay Pal Singh Atwal, also highlighted concerns over the reliability of inter-state power banking arrangements.
He pointed to states such as Himachal Pradesh, which have significant hydropower resources, saying that such states have increasingly preferred selling electricity in the open market during peak summer months instead of entering into banking arrangements with Punjab.
The association argued that reliance on market purchases and banking arrangements cannot provide guaranteed energy security for Punjab.
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The engineers said Punjab urgently needs dependable round-the-clock, or RTC, baseload power to meet demand during non-solar hours and at night.
They warned that without quickly adding thermal generation capacity under the state sector, Punjab could continue facing a cycle of electricity shortages every summer.
The association also expressed concern over the growing dependence on power purchased from outside Punjab and private independent power producers. It said this not only exposes the state to uncertainty over electricity availability and market prices but also results in a substantial financial outflow from Punjab.
The engineers have therefore called for an immediate policy review of the quantity of power being purchased from outside the state and the financial burden associated with it.
The association said it had repeatedly raised the issue through letters and communications and had suggested timely expansion of state-sector generation capacity.
It has now urged the government to treat additional generation capacity as an immediate strategic priority and direct the power corporation to begin work on new generation projects without further delay.
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- PTC NEWS
