FREE ELECTRICITY IN PUNJAB BECOMING 'SHOCK' IN THE LONG RUN

Recently AAP government led by CM Bhagwant Maan announced free electricity for up to 600 units in a billing cycle to every Punjabi or 300 units free in a month. Where everyone praises CM Maan for completing the AAP guarantee, economists raising questions about the timing of the decision when the state is already in a financial crisis. Punjab is going into a debt state, where Punjab had a debt to GSDP ratio of 42.5 per cent as per 2019-2020 data given by RBI. It means 42.5 per cent of Punjab's money is spent on to repayment of debts. On it, the Punjab govt going back to the old pension scheme.

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According to Hindustan Times Free electricity costs Rs 50 crores daily (this includes free power to the agriculture sector, industry and domestic consumers). 

Punjab CM Bhagwant Maan highlighted in a recent public event that about 87% of households get zero power bills. The Punjab govt already giving free electricity to the agriculture sector for irrigation. On top of up, this free electricity makes PSPCL a loss-making undertaking in which PSPCL depends on subsidies given by govt. It is also a loss of revenue and govt has to adjust this burden on other sectors and govt doing so.

Before the free electricity scheme to households, many Punjabis planned to buy solar panel systems for their power needs to get a cheap and regular supply. this may increase the power supply to grids. But now they dropped their plans and it hits the solar system sector.

What should Punjab govt have to do?

As Punjab is fully dependent upon coal and hydropower. Punjab state has a number of disputes with its neighbouring states. Dispute with centre govt regarding Route for taking coal to Punjab. Water dispute with Haryana over SYL. Dam dispute with Centre and Himachal Pradesh. Electricity dispute with Himachal Pradesh. Punjab may solve it but without depending on these issues. Some of them will solve.  

The Punjab govt should switch its dependency on power needs to solar power energy by installing solar panels over rivers, canals, Schools, govt offices, lakes, ponds in villages and other areas. And made compulsory in every school, college, university, hospital, mall, hotel, office, religious place and other institution to install solar panels by giving an extra one-time subsidy so that they get their requirement of power and also surplus to grids. 

The Punjab govt should switch to nuclear power energy.

For electricity production, Punjab should switch from coal to agricultural waste like stubble. Punjab has to make one problem into the solution to another problem

There are some areas where wind energy plants may be installed, govt has to explore them.

Punjab should move to non-fossil energy for their needs. By doing so Punjab will reduce carbon emission 

There should be village-level projects so that every village will fulfil its power needs like a village common biogas plant.

Conclusion: Punjab govt needs to make a comprehensive plan for the long term by which Punjab will make a profit from the Power sector as Neighbouring will depend on Punjab. The financial condition of Punjab is not good as Youth is migrating to foreign countries.