Mr Channi said a survey suggested people wanted cheap, and not free power.
Power rates for domestic consumers have been slashed by three rupees per unit in Punjab, Chief Minister Charanjit Singh Channi announced today. The new rates will be applicable from today itself. Taking a dig at Aam Aadmi Party chief Arvind Kejriwal's poll promise of free electricity, Mr Channi said that his government's survey suggested people wanted cheap, and not free power.
AAP has called the move a pre-election "stunt" by the Congress party and appealed to the people of the state to be wary of Charanjit Singh Channi's "false promises". They pointed out that Congress is in power in many other states but hasn't slashed prices there because it's just not in their vision and they are doing this now just a few months ahead of elections because they are intimidated by AAP's rapid growth in the state.
"Mr Channi knows very well that Congress's internal survey also indicates that AAP is rapidly expanding in Punjab and the people want Arvind Kejriwal's government in the state next year. Mr Channi is doing this drama after seeing how 3 million families in Punjab connected with us over Arvind Kejriwal's free electricity guarantee," said Raghav Chadha, co-in-charge of AAP in Punjab.
This move will benefit 95 percent of residents in Punjab, the Chief Minister claimed in a press conference today. Several other announcements were also made today, presumably keeping the state assembly elections in mind. Punjab goes to polls early next year and all parties have been campaigning aggressively in the state.
Mr Channi further announced 11 percent hike in Dearness Allowance (DA) for state government employees. Rs 440 crore will be allotted for this, he said.
"Inflated power bills are a major issue for Punjabis, it leads to utter chaos and poverty, which leads to suicide. We are going to resolve this and have decided in today's cabinet regarding this," Mr Channi said.
Promising uninterrupted power supply at affordable rates to customers, the Chief Minister announced that the state government will terminate the Power Purchase Agreement with GVK Goindwal Sahib. "This costly power will be replaced with the low-cost power from solar and other sources," a press note from the government said.
Rs 3,316 crore will be spent per year on power subsidies, Mr Channi said. "Punjab already bears Rs 10,628 crores on power subsidy and now total subsidy is 14,000 crores, which is seven times than what Delhi spends on the same. Delhi spends Rs 2,200 crores," he added.
The new rats will significantly lower the burden on consumers. Till yesterday, the rate was 4.19 rupees per unit till 100 units; with the changes announced today, it will be just 1.19 rupees per unit.
For 100 to 300 units, consumers were charged 7.01 rupees per unit. Now they'll be charged 4.01 rupees per unit for the same.
For more than 300 units, charges are 8.76 rupees per unit which will now be 5.76 rupees per unit.