Panjab Power Consumption up by 43%, Theft Dents Exchequer by $215M

With the heat wave in Northern India and paddy season in Panjab, power consumption has gone up by 43% compared to the same period in 2023. While the Punjab State Power Corporation Limited (PSPCL) has met a demand of 15,775 MW in June 2024, the maximum demand was 11,309 MW in June 2023. Data collected from the PSPCL shows that power worth $215M is stolen every year by consumers. At least 23 govt. departments have defaulted over bill payments and together owe $432M. The finance department has pointed out that free power up to 300 units cost the state $2.4B and free bus passes for women cost $83M. If immediate measures are not taken, the state may find it difficult to pay salaries and power subsidy bills. The free power scheme has an effect on the groundwater table. Panjab has 1.4M tube wells. Over an eight-hour daily run, a tubewell pumps out 3M liters of water per week. 14 lakh tubewells pump out 4,385B liters of water in a week. This water is needed mostly for paddy cultivation. The answer is obvious: diversification. But since the 1980s, that has not been addressed. The other solutions are canal waters and increasing the farmers’ income and removing power subsidies. According to an expert, an average farmer earns $311 per month. If increased to $479 through better price for their produce, the govt. can remove the subsidy. That big and medium farmers, not small and marginal, enjoy most of the subsidy is also a matter of concern (SDW Vol 2 Issue 2, Story 3).