The Newz Radar
SHIMLA: Election promises of political parties pose a growing threat to Himachal Pradesh treasury, and the situation at the state electricity board is deteriorating rapidly due to the announcement of free power. The previous BJP government had decided to provide 125 units of free power to each domestic consumer, incurring an expenditure of approximately Rs 1,100 crore.
While the government allocates funds for the subsidy, the delay in receiving these funds is adversely impacting the financial health of the electricity board. Due to 125 units of free power, about 14.62 lakh consumers are getting zero bills, thus costing the government about Rs 1,100 crore.
Subsidy promise not being kept
At the time of implementing the scheme, the previous Jai Ram Thakur government had assured that the government would pay the subsidy amount to the electricity board in advance, but the promise hasn’t been kept on several occasions by his government and the current Sukhvinder Singh Sukhu regime. The breach of promise has landed the electricity board in crisis.
A similar problem has arisen this time also. The government had released two quarterly instalments in April and July, but in these also about Rs 50 crore less was given to the electricity board. After this, the October instalment of Rs 275 crore was not paid to the electricity board and the advance instalment of January is also pending. This is the reason why the salaries and pensions of the electricity board employees and pensioners could not be paid on time. Employees and pensioners have taken to the streets across Himachal regarding the salaries and pensions and now the government has cleared the payments of 19,000 employees and 20,000 pensioners.
Situation will worsen if 300 units given free
Currently, the state is providing 125 units of free electricity to domestic consumers. However, if the Sukhu government fulfils the Congress’ commitment by offering up to 300 units of free electricity, approximately 18 lakh domestic consumers would receive zero bills. With a total of 22.59 crore domestic electricity consumers in the state, only 4.5 lakh consumers would be required to pay their electricity bills. The extension of the 300 units of free electricity would impose an additional burden of over Rs 400 crore on the state exchequer. Consequently, the provision of free electricity alone would result in an economic burden exceeding Rs 1,500 crore.
The electricity board is currently grappling with a loss of approximately Rs 1,700 crore, the financial challenges stemming from the delayed receipt of electricity subsidies from the government. Simultaneously, a concerning scenario unfolds as there is a scarcity of essential winter gear such as snow kits, raincoats and gloves for the employees in the electricity board.
Demand to ensure fiscal prudency
Heera Lal Verma, co-convener of Himachal Pradesh Electricity Board Employees and Engineers Joint Front, says that it is the government’s prerogative to provide free electricity, but the government should give free electricity considering its financial condition, so that the financial condition of the electricity board does not deteriorate.
