Punjab BJP Leader Alleges Financial Manipulation in Power Corporation
Punjab BJP president Sunil Jakhar has launched a scathing attack on the Bhagwant Mann-led state government, accusing it of misleading the people of Punjab regarding the financial health of the Punjab State Power Corporation Limited (PSPCL). In a press conference held in Chandigarh on Monday, Jakhar asserted that the government is presenting a false narrative of the corporation shifting from losses to profits, while in reality, it is steering this critical institution towards financial collapse and eventual privatisation.
Discrepancy in Financial Petitions Raises Eyebrows
Jakhar highlighted a significant discrepancy in PSPCL's financial reporting. He pointed out that on November 28 last year, the corporation filed its Annual Revenue Requirement (ARR) petition with the Punjab State Electricity Regulatory Commission, as mandated by regulations before November 30 each year. In that initial petition, PSPCL reported a substantial loss of Rs 1,715 crore.
However, in a surprising turn of events, on February 4, 2026, PSPCL submitted a revised petition for the first time in history, which was promptly approved by the regulatory commission. This revised document claimed a surplus of Rs 7,852 crore and indicated a reduced requirement for electricity subsidy from Rs 19,600 crore to only Rs 15,200 crore.
Allegations of Accounting Irregularities
The BJP leader further alleged serious accounting irregularities. He claimed that the government provided Rs 3,581.95 crore in loss funding to PSPCL, but this amount was incorrectly recorded as income in the corporation's financial accounts. Jakhar emphasised that this practice is completely incorrect and against established rules, distorting the true financial picture.
Based on this revised petition, the government created an impression of reduced electricity tariffs. Jakhar criticised this as misleading, noting that the largest reduction was shown for domestic consumption up to 300 units. Since electricity within this limit is already free for many households, the benefit does not reach consumers. Instead, it merely reduces the subsidy the government pays to the power corporation, raising questions about the transparency of the process.
Mounting Financial Concerns and Governance Issues
Jakhar expressed deep concern over PSPCL's financial condition, revealing that the government owes Rs 11,109.70 crore in subsidy up to March 31, 2025. Additionally, Rs 4,300 crore is pending for the period until now, and Rs 2,600 crore is owed by various government departments, exacerbating the corporation's liquidity crisis.
He also criticised the government for not appointing a regular chairman for PSPCL. Jakhar stated that even if an interim administrator is appointed, the position should be held by an officer at the principal secretary level, but this norm has not been followed. The officer currently assigned the role already handles multiple departments, potentially compromising effective oversight.
Accusations of a Privatisation Agenda
Jakhar alleged that by manipulating financial records, the corporation is being deliberately pushed towards significant losses as part of a broader plan that will ultimately lead to its privatisation. He questioned whether PSPCL can continue to function under such circumstances and emphasised that no matter what method is used, the actual costs and expenditures cannot be ignored.
The allegations underscore growing tensions over the management of Punjab's power sector, with the BJP leader calling for greater accountability and transparency from the state government to safeguard public interests.
