Patiala: Punjab State Power Corporation Limited (PSPCL) allowed Rs 4.7 crore subsidy to Gaushalas, Rs 11.17 crore to flood-affected villages and another Rs 50 lakh to mushroom farmers in violation of the Punjab State Electricity Regulatory Commission (PSERC) rules and the Electricity Act.
As per the Electricity Act, the state can subsidies any category of the consumer by paying in advance the subsidy amount to the utility. For that, it has to take a prior permission from the PSERC.
While no such permission was taken, the PSPCL issued circulars allowing free power to these consumers only to find itself in a tight spot as the government is not clearing the subsidy bills.