Montek-led panel recommends rationalisation of power subsidy in Punjab

An expert panel headed by former deputy chairman of Planning Commission Montek Singh Ahluwalia has strongly backed power sector reforms, including rationalisation of subsidy, suggested by the 15th Finance Commission to improve the fiscal health of Punjab.

The expert group, in its final report on “Medium and Long Term Post-Covid Economic Strategy for Punjab” submitted recently, has recommended that the state government should undertake power sector reforms along the lines indicated by the Finance Commission (FC). “Political economy considerations are extremely important, but it is also necessary to recognise that unsustainable fiscal practices will harm future generations and cannot be continued indefinitely,” it said, while making the recommendation.