The Times of India – Punjab gets powershock from Himachal Pradesh

Priya Yadav

Chandigarh, 9 April 2012. The Union ministry of power has sought details from Bhakra Beas Management Board to work out the arrears that Punjab government owes to Himachal Pradesh for its share of 7.19 % in power generation at all projects of BBMB. The cash-strapped Punjab government is working out strategies to dispute Himachal Pradesh’s claims of Rs 4,000 crore.

A panel comprising officials from the Central Electricity Authority, the ministry of power and the BBMB are holding meetings to prepare a report on how much is actually due to Himachal Pradesh government by Punjab government. The latter has vehemently disputed claims of Rs 4,000 crore projected by the Himachal Pradesh in the Supreme Court. The report being prepared, said sources in the BBMB, will be submitted to the apex court.

“The BBMB is not directly in the picture but is only providing figures and statistics to the ministry of power about the total energy generated, cost of projects, escalation costs,” said an official of BBMB.

The matter has become a reason of concern for Punjab’s already precariously placed financial position, especially with the Supreme Court’s intervention. The state government is mulling to take a loan of nearly Rs 9,000 crore during the financial year 2012-13, to run its business.

Sources in the finance department revealed that the Punjab government is paying Rs 7,000 crore every year as interest on the staggering debt of Rs 85,000 crore. The bills pending with the government, as of now, total up to over Rs 1,000 crore.

The state needs another Rs 6,000 crore to settle energy bills of free power promised to the farmers and the poor.

And if the SAD-BJP government has to fulfill its election promise to employees, of giving 30% of money due as per Fifth Pay Commission, then another Rs 1,500 crore are required.

http://timesofindia.indiatimes.com/india/Punjab-gets-powershock-from-Himachal-Pradesh/articleshow/12591465.cms

The Tribune – Bhakra power share: SC plea dismissal a setback for fund-starved Punjab Corp

Umesh Dewan, Tribune News Service

Patiala, April 1. With the apex court dismissing petitions filed by Punjab and Haryana for a review of the court judgment dated September 27, 2011, wherein both the states were directed to raise the Himachal Pradesh share of power in the Bhakra-Nangal project from 2.5 per cent to 7.19 per cent, with retrospective effect from 1966, has certainly come as a “shocker” for the cash-strapped power corporation.

In the wake of the fact that Punjab is a power-deficit state and Punjab State Power Corporation Limited (PSPCL) is already in a precarious fiscal situation, the dismissal of the petition is being considered as a major setback for the state.

According to the senior functionaries of the Punjab Government, deliberations will be held to chalk out future course of action once they get a copy of the court judgment.

Notably, on September 27, 2011, the Supreme Court had pronounced its verdict on a suit filed by Himachal Pradesh in 1996, bringing down the Punjab’s share from the Bhakra Beas Management Board (BBMB) projects from 54.5 per cent to 51.8 per cent. Subsequently, Punjab moved a petition in the apex court seeking the review of the court verdict.

Elaborating on the matter, some senior officials of the PSPCL said, “Dismissal of the petition means an increase in Punjab’s power deficit by 3,000 lakh units (LUs) annually. To fill this shortfall, the corporation will have to purchase power from other states, which will put an additional annual burden of around Rs 80-90 crore on it.”

http://www.tribuneindia.com/2012/20120402/main4.htm