Punjab CM reduces power rates by ₹3/unit, hikes DA for govt employees

Mohali: The Punjab cabinet on Monday decided to cut power tariff by ₹3 per unit for domestic consumers with immediate effect.

The populist decision, which comes just months ahead of the assembly elections, will put a burden of ₹3,316 crore per year on the exchequer.

The announcement was made by Punjab chief minister Charanjit Singh Channi after the cabinet meeting. “We are reducing power tariff by ₹3 per unit for domestic consumers,” Channi told a press conference in Chandigarh.

It is a “big Diwali gift” for people, he said, adding that the decision will come into effect immediately. He said according to a survey conducted by his government, people wanted quality and cheap power.

Domestic consumers having up to 7KW load connection across all slabs will be benefited. With this announcement, 95% of consumers have been covered as the beneficiaries comprise 69 lakh of the 72 lakh PSPCL consumers.

PPAs with two more private plants to be reworked

The chief minister announced that the government has decided to terminate the power purchase agreement (PPA) with the GVK-owned power plant at Goindwal Sahib in Amritsar. He said his government will rework the power purchase agreements with two other privately owned thermal plants in Punjab by bringing a legislation in the session of the state assembly on November 8.

11% dearness allowance for Punjab employees

The Punjab chief minister also announced 11% dearness allowance (DA) to the employees with effect from July 1.

This will add a burden of ₹440 crore a month on the state exchequer.

The Channi government is, however, silent on paying the DA arrears.

The CM claimed that the employees have agreed to call off their week-long strike and have assured him that there will be no strike by them during the remaining tenure of his government before the assembly elections early next year.

Mum on resignation of APS Deol as advocate general

During the press conference, Channi evaded a query on the resignation of APS Deol as advocate general on Monday afternoon. A senior official in the chief minister’s office later confirmed that the resignation has been accepted and further course will be announced shortly.