Punjab's Power Sector Achieves Remarkable Turnaround Under AAP Government
In a significant development for Punjab's energy landscape, Chief Minister Bhagwant Mann declared on Monday that the state's power sector has undergone a major transformation. Once operating at a loss, the department is now running profitably while maintaining its commitment to providing free electricity to approximately 90% of households across the state.
Free Power and Financial Stability
Addressing a press conference in Chandigarh, Mann emphasized that his government has successfully ensured "cheap and uninterrupted" electricity across all sectors. He asserted that Punjab is now supplying regular power without imposing any additional financial burden on consumers, marking a substantial achievement in public utility management.
The state continues to provide 600 units of free electricity to qualifying households each month, a flagship welfare program that has remained intact despite the sector's financial turnaround. This dual achievement of profitability and continued public benefit represents a notable shift in how state-run power utilities can operate effectively.
Infrastructure Strengthening and Record Performance
Mann detailed several key initiatives that have contributed to this transformation:
- Acquisition of Goindwal Thermal Power Plant: The government has strengthened generation capacity through the acquisition of the 540 MW Goindwal Thermal Power Plant, enhancing the state's power infrastructure significantly.
- Record Peak Demand Met: On June 5, 2025, Punjab successfully met a record peak power demand of 16,670 MW, surpassing the previous high of 16,058 MW recorded in June 2024. This demonstrates improved grid management and generation capacity.
- Improved Efficiency and Reduced Tariffs: The Chief Minister claimed that operational efficiency has increased while tariffs have been reduced, benefiting both residential and commercial consumers.
Farm Safety Initiative and Future Projects
In a move aimed at enhancing agricultural safety, Mann announced a new initiative to shift high-tension power lines passing through farmers' fields underground. The pilot project will begin in his native village, where 413 tubewells and 1,100 electricity poles are currently spread across 2,000 acres of agricultural land.
"This underground cabling initiative will significantly reduce risk to farmers and their crops," Mann stated, highlighting the government's focus on both energy infrastructure and agricultural safety.
Energy Security and Green Transition Plans
The Chief Minister provided reassuring updates on the state's energy security:
- Coal Stock Availability: Thermal plants currently maintain substantial coal reserves with 41 days of stock at Ropar, 37 days at Lehra Mohabbat, and 32 days at Goindwal Sahib, ensuring no immediate shortage concerns.
- Hydel Project Progress: The 206 MW Shahpur Kandi Hydel Project is expected to begin power generation by May 2027, adding to the state's renewable energy portfolio.
- Green Energy Expansion: Punjab aims to dramatically increase its share of green energy from the current 20% to 80% over the next six years, signaling a strong commitment to sustainable power development.
This comprehensive update from the Punjab government highlights a multi-faceted approach to power sector reform that balances financial viability with public welfare commitments, infrastructure development with safety considerations, and conventional energy security with ambitious renewable energy targets.



