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Tag: Free electricity

  • Big Setback For States Providing Free Electricity? Power Minister Warns Of Debt Trap | Economy News

    New Delhi: Power Minister RK Singh has warned of a debt trap for states like Punjab using borrowed money to provide free electricity, saying such populist schemes are fine only if a state has finances. Electricity, like any other commodity, involves the cost of generating it, and if a state is to provide it for free to a section of consumers, it also needs to have finances to pay the generating utility.

    If the generating utility isn’t paid, electricity will not be produced in the first place. In an interview with PTI, Singh said he has been telling states that electricity is not free. (Also Read: Zomato Bag, Swiggy Shirt, Zypp Helmet: Can You Guess From Which Company The Delivery Man Is?)

    “If any state wants to give free power to any category of people, they can go ahead and do so, but you have to pay for it”. (Also Read: 7th Pay Commission: Central Govt Revises Employees’ Allowances — Read In Detail)

    However, states with already high debt are resorting to such populist measures, forcing them to borrow more to pay generating utilities, resulting in a debt trap.

    “You should not be bringing your state to a situation where it falls into a debt trap. Many of the states are close to debt traps because of freebies,” the minister said.

    Asked to name states that do so, the bureaucrat-turned-politician said, “For example Punjab”. Since coming to power in Punjab in 2022, the Aam Aadmi Party (AAP) government has taken several populist measures, including free power up to 300 units per household.

    Punjab borrowed as much as Rs 47,000 crore in the first two years of the AAP government, adding to the already high debt of the state. This has strained finances where a good part of the tax revenues earned went into paying interest and principal of the previous borrowing.

    “Many of these states are close to debt trap,” Singh said. He explained further that states are borrowing to give freebies so that they can stay in power, and the burden is being shifted onto the succeeding generations.

    For future generations, there will be no money for roads, building hospitals, and schools because whatever revenues will come will go into repayment of loans, he added.

  • Punjab CM declares 300 devices of unfastened chronic each and every month to home shoppers, however with a rider

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    CHANDIGARH: Punjab Leader Minister Bhagwant Mann on Saturday introduced 300 devices of unfastened chronic each and every month to home shoppers from July 1.

    However there’s a rider. CM Mann stated if a family consumes greater than 600 devices in two months it’ll be out of the ambit of the unfastened chronic scheme and must pay the total invoice.

    He went directly to claim that Scheduled Caste households and freedom combatants, who have been previous getting 200 devices of unfastened chronic, may also get 300 devices of unfastened chronic a month. For them on my own, simplest the devices above the free-power prohibit might be chargeable, Mann clarified.

    The CM additionally put to leisure rumours that the unfastened chronic scheme for farmers will finish. He stated subsidised chronic to trade too will proceed.

    ALSO READ | Punjab wheat grain shrivels up because of emerging warmth, Centre sends groups

    Mann stated Punjab produces chronic but chronic is costly within the state. Evaluating Punjab to Delhi, he stated Delhi purchases chronic from two personal firms and in spite of that 73 in line with cent of the folk in Delhi get unfastened chronic.

    The CM additionally waived off dues of electrical energy expenses as much as 31 December 2021 for families having a load of as much as 2 kilowatts of electrical energy.

    This used to be probably the most first pre-poll guarantees made through Kejriwal on June 29, 2021, when he introduced that if AAP involves chronic in Punjab but even so waiving the pending home invoice bills, the birthday celebration will supply unfastened electrical energy to each and every family.

    Submit the announcement through Mann, Kejriwal stated that the AAP in Punjab has fulfilled its first ballot promise of unfastened electrical energy whilst stressing that his birthday celebration does now not make false guarantees.

    “A decent and patriotic executive with transparent intentions has are available Punjab. We can now not permit loss of finances to come back in the best way of growth,” Kejriwal tweeted.

    AAP MLA and senior birthday celebration chief Aman Arora stated that Leader Minister Bhagwant Mann has taken the largest determination on the subject of chronic in our nation nowadays.

    Until date, no executive within the nation has introduced unfastened electrical energy to the sort of huge segment of the inhabitants. With this determination, 80 in line with cent of households in Punjab gets unfastened electrical energy.

    There are somewhat over 73 lakh family electrical energy customers in Punjab, of whom about 62 lakh will without delay get pleasure from this determination.

    Allaying any apprehension that some sections of society would possibly not get the total advantage of this scheme, Arora stated the rider have been added to make sure there used to be no wastage or misuse of electrical energy. If electrical energy turns into utterly unfastened, then it may be unnecessarily used and wasted, which can create a disaster for the rustic’s power device.

    ALSO READ | Coal scarcity to result in extra chronic cuts in Punjab in coming days

    He went on so as to add that just a small in line with cent of the inhabitants would possibly not get the total advantage of this scheme because of their use of ACs, coolers and so on. all over the summer time, however even they’ll be lined below this scheme for the rest 8-9 months.

    It’s learnt that out of round 73.80 lakh home shoppers within the state, round 62.25 lakh shoppers want not up to 300 devices monthly.

    The price of giving unfastened chronic to all is estimated at round Rs 1,300 crore monthly. The state executive already offers unfastened chronic to farmers and 200 unfastened devices to the scheduled castes, backward categories and BPL (Under Poverty Line) households. Trade additionally will get chronic at subsided charges.

    The full chronic subsidy is price Rs 12,000 crore in line with yr lately. The state has an impressive debt of Rs 3 lakh crore.

    The facility call for in Punjab has already touched 8,000 MW and within the coming days, it’ll jump to just about 15,000 MW as soon as the planting of paddy starts.

    Rural spaces are already witnessing lengthy chronic cuts. The placement in city spaces is somewhat higher however one- to two-hour-long chronic cuts are a normal function right here.