New Delhi: Punjab Chief Minister Charanjit Singh Channi on Monday announced the state cabinet’s decision to slash power tariff by Rs 3 per unit for domestic consumers across slabs.


He informed that the decision will come into effect immediately and will put an additional burden of Rs 3,316 crore per year on the exchequer, news agency PTI reported.


Charanjit Singh Channi has termed the Punjab government’s decision as a “big Diwali gift” for people.


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The decision comes as the Punjab government called a cabinet meeting today to decide on the reduction of electricity rates. 


Addressing a press conference in Chandigarh, CM Channi stated that the government conducted a survey to know whether the people of Punjab want 300 units of free electricity or want cheap electricity.


“People of Punjab do not want anything free. They want quality power at cheaper rates,” he said while quoting the survey.


With this decision, CM Charanjit Channi claimed that the tariff rate for the domestic category in Punjab has become cheapest in the country.


For up to 100 units of consumption (up to 2 kW), the power tariff will drop to Rs 1.19 per unit from Rs 4.19 per unit and for 101-300 units, the tariff will be Rs 4.01 and for above 300 units, the power rate will be Rs 5.76 per unit. Similarly, power rates for more than 2 kW and up to 7 kW will also come down, he stated.


The Chief Minister also informed that his government has issued a notice of termination of the power purchase pact with the GVK Goindwal Sahib power project as it was costing Rs 6-7 per unit.


Taking a dig at the previous SAD-BJP regime, he alleged that no tenders were called for this project. He said tenders had been issued for buying solar power at Rs 2.38 per unit.


Three power purchase pacts will also be reconsidered and a bill will be brought in the Vidhan Sabha (Assembly) in this regard, the CM informed.


We have started buying power at cheaper rates, he stated.


It was also informed that the existing free power facility of up to 1 kW to Scheduled Castes, Other Backward Classes, and BPL categories will continue.


Besides this, CM Charanjit Channi also announced an 11 per cent hike in dearness allowance (DA) for state government employees.


The cabinet decision comes as the Punjab government has been facing the ire of the opposition and various sections of society for costly electricity.


Ahead of the 2022 assembly election to be held in Punjab, the Aam Aadmi Party and the Shiromani Akali Dal have already promised 300 units and 400 units of free power, respectively, if their parties come to power.


Punjab Congress leader Navjot Singh Sidhu has also been pressing for providing power to people at cheaper rates.


(With Agency Inputs)