Punjab State Power Corporation Limited (PSPCL) is at present suffering a loss of over Rs 1,880 crore in contrast to a profit of Rs 1,069 crore it generated in March 2022. Following populist schemes and escalating cost of coal in addition to the inability on part of the successive governments to clear subsidy amounts, PSPCL is raising loans to meet expenditures.
PSPCL has sought a short-term loan twice this financial year amounting to Rs 1,500 crore. The state has intimated PSPCL that it will pay Rs 15,845 crore of power subsidy for the current year. Subsidy, however, is likely to cross Rs 17,500 crore given the recent populist schemes of the government.
