Punjab's AAP Government Demands Rs 1,246 Crore Power Dues from Panchayats
The Aam Aadmi Party government in Punjab has taken a firm stance on outstanding power bills. It has directed the rural development and panchayats department to clear pending electricity dues amounting to Rs 1,246 crore. This move represents a significant shift from the previous administration's policy.
Reversal of Previous Waiver Policy
In November 2020, the Cabinet led by then Chief Minister Charanjit Singh Channi announced a major decision. It waived off power bills for tubewells supplying drinking water to village residents. The government reduced the water supply charge from Rs 166 to just Rs 50 per month per household. More importantly, it promised that the state would settle all outstanding arrears.
Channi made this announcement in a dramatic fashion. He publicly burned copies of power bills in Chamkaur Sahib as a symbolic gesture. The notification clearly stated that the Punjab government would provide funds to clear these dues after settlement with the power corporation.
Current Government's Directive
The current AAP administration has taken a different approach. Despite facing financial constraints, it has asked the panchayats department to prioritize clearing the frozen amount of Rs 1,246 crore. The power department communicated this decision to officials during a recent meeting.
A formal communication followed on Monday. It specified that Rs 1,246 crore in electricity dues remained pending as of December 31, 2025. Out of this total, Rs 705 crore relates specifically to frozen amounts for Rural Water Supply connections.
Concerns Raised by Power Corporation
The Punjab State Power Corporation Limited has expressed serious concerns about these unpaid bills. In its communication, PSPCL highlighted several critical issues. The substantial unpaid amount creates severe operational challenges for the corporation.
Under the RDSS scheme of the Ministry of Power, compliance with financial terms is crucial. Non-payment of electricity bills constitutes a serious breach of these terms. This default hinders PSPCL's ability to secure funds from financial institutions for capital expenditures. It also hampers the corporation's day-to-day operations significantly.
While current monthly electricity bills for RWS connections are being paid regularly by the Department of Water Supply and Sanitation, the frozen amounts remain outstanding. There has been persistent delay in clearing these dues, creating ongoing financial pressure.
Financial Burden on Panchayats
The directive places a substantial burden on local governing bodies. An official familiar with the matter expressed concern about implementation. "This huge amount will be passed on to the panchayats now," the official stated. "Where will the panchayats get the money from? Let us see what happens next."
This development comes at a time when the AAP government has implemented several power-related policies. It provides free power supply of up to 300 units monthly to all households in Punjab. This popular scheme contributes to a burgeoning power subsidy bill exceeding Rs 22,000 crore annually.
Broader Context and Implications
The situation highlights the complex financial challenges facing state governments. While previous administrations may announce popular measures like bill waivers, subsequent governments must address the fiscal realities. The substantial amount involved - Rs 1,246 crore - represents a significant financial obligation.
PSPCL has specifically requested that concerned departments prioritize clearance of pending electricity bills. It has also emphasized the importance of ensuring prompt payment of current bills on a regular basis. The power corporation's ability to function effectively depends on timely payments from all government departments.
Power Minister Sanjeev Arora was not available for comment regarding this development. The communication between departments continues as officials work to address this substantial financial issue affecting rural water supply infrastructure across Punjab.
