RS Sachdeva
Chandigarh, April 10, 2020: “We are grateful to the Punjab Power Department and the Punjab Government for coming to the rescue of industry in the State by announcing several concessions for the lockdown period,” said RS Sachdeva, Mentor, Punjab State Chapter of PHD Chamber of Commerce and Industry.
He was speaking at the interactive webinar with A Venu Prasad, IAS, Principal Secretary/Power, GOP and Er Baldev Singh Sran, CMD, PSPCL organised by PHDCCI here on Thhursday where a number of representatives of industry from Punjab, members CREDAI, Punjab participated to discuss the problems being faced due to COVID-19 pandemic.
Karan Gilhotra, Chairman and Simarpreet Singh, Co-Chairman respectively of Punjab State Chapter of PHDCCI along with other industrialists welcomed the Principal Secretary/Power and CMD/PSPCL and thanked them for sparing their valuable time to attend the webinar.
Principal Secretary, Power informed that the current situation is very critical and Punjab Government is trying to help the industry to the maximum but this cannot go beyond a certain limit as PSPCL also has to meet its liabilities regarding fixed charges payable to Central Sector Generating Stations and IPPs of the state and several other expenses.
CMD,PSPCL assured the industry that PSPCL is trying its best to redress the concerns of the Industry as it contributes significant revenue to PSPCL. However, being a commercial organization and revenue neutral entity, it requires the cash flow. Major expenditure of PSPCL is for power purchase and the Ministry of Power, GOI and CERC have not exempted PSPCL from the payment of fixed charge liability of power purchase.
The issues raised by the industry and response of the Officers are summed up as under:
1. Industry demanded that Fixed Charges be exempted for the actual period of the lockdown plus three months as it will take time to revive the industry after the lockdown is withdrawn. Industry also requested that the due date of payment of bills be extended up to 15 days beyond the date of complete lifting of the lockdown. It was informed that the present exemptions have been decided based on the present 21 day lockdown. If the government extends the lockdown beyond 14/4/2020, GOP/PSPCL will consider to extend the period further appropriately.
2. On the demand of reduction in Electricity Duty and Infrastructure Development Fund, it was informed that the liability of the industry will be only for the units actually consumed and no liability for these taxes will arise for the period of lock down when there is no consumption.
3. Co-Chairman pointed out that the Capital Investment Plan of Rs 3131 Cr for PSPCL and 281 Cr for PSTCL has been approved for the year 2020-21. This expenditure be reduced to minimum to the extent of taking care of emergency works. Principal Secretary, Power appreciated the suggestion and assured that only those works related with 24X7 power supply will be taken up under Capital Investment Plan.
4. CMD, PSPCL informed that while introducing two part tariff, MMC was abolished. Therefore, during the period of two months when single part tariff will be applicable, MMC will not be levied.
5. CMD, PSPCL explained that fixed charges have been exempted for LS and MS consumers. For SP consumers, fixed charges are being subsidized by GOP. Hence whole of the industry is exempted from payment of fixed charges for 2 months period beginning from 23/3/2020. PSERC has been requested to work out the weighted average per unit liability for the fixed charge for the industry which will be billed to consumers in addition to normal energy charge and the bill will be prepared on single part. The per unit subsidy being paid by GOP in the energy charge component (difference of the Energy Charge applicable for the category and Rs 5/- fixed by GOP) prior to 23/3/2020 will continue to be borne by GOP. For example the LS industry having tariff of Rs 260 per KVA per month as fixed charge and Rs 5.98 per KVAH as energy charge shall be liable to pay around Rs.6.18 as energy charge for the actual units consumed with NIL fixed charges and GOP Subsidy of Rs 0.98 will continue to be borne by GOP.
6. CREDAI representatives requested that all payments towards UUE cases i.e. 50% of final notice amount be also deferred to the extent of lockdown period plus 15 days so as to file appeal with the concerned Authority/Court. CMD/PSPCL informed that the issue is already under their consideration.
Presenting the vote of thanks to the Honorable Guests and industry representatives at the end of the webinar, Mr. Sachdeva thanked the Principal Secretary, Power & CMD, PSPCL for their assurances to help industry to survive in these difficult times.