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Home News Power Sector News PSEB in financial crisis as govt adjusts subsidy against loans

PSEB in financial crisis as govt adjusts subsidy against loans

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PSEBThe Punjab government has ordered the release of the subsidy amount towards the Punjab State Electricity Board (PSEB), but only in paper.Instead of releasing the amount, however, the government has ordered that it be adjusted against the loans that the power board was to repay it.

The cash-strapped Punjab government has given a “breather” to PSEB regarding payments worth Rs 1,410 crore, but with a rider — the amount should be adjusted against PSEB’s pending subsidy loan till March 2009.

This means that the state government has paid nothing, but has adjusted the amount it was to retrieve from PSEB, in gross violation of the Electricity Act, 2003.

PSEB is already suffering from an acute financial crunch and might face problems in clearing dues and salaries of its employees.

PSEB sources confirmed that the Punjab government, through a letter, has recalled loans due from PSEB amounting to Rs 1,660.50 crore, of which Rs 1,140.43 crore has become payable to the government.

Source- Indian Express

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