Punjab State Power Corporation Limited’s (PSPCL) rating has been lowered by the Union Ministry of Power, in the just released Ninth Integrated Rating Booklet. The state power utility’s rating has been lowered from A + to A.
Though the state’s rating is good at the all-India level, the ranking has fallen from No. 4 to No. 7 now. The areas of concern listed for the state in this year’s rating are the state’s absolute subsidy dependence, which remains high, given the subsidised nature of tariff, particularly towards agriculture consumers, coupled with delay in receipt of subsidy. The state’s high cost of power purchase and low cost efficiency on account of high employee cost is also listed as a key concern in the report.
