Punjab power subsidy: HC seeks Chief Secretary affidavit

Chandigarh, Oct 17 — The Punjab and Haryana High Court has directed the Chief Secretary of Punjab to file an affidavit in a public interest litigation (PIL) alleging that the state government has failed to pay electricity subsidy and the outstanding power bills of its departments to the Punjab State Power Corporation Limited (PSPCL). The order puts the Punjab power subsidy dispute — a long-running source of friction between the state and its power utility — back under the court's scanner. The direction came from a Bench of Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor, which took up the petition on Friday. The petitioner alleges that the government has not cleared the electricity subsidy due to PSPCL, even as the utility's finances strain under unpaid dues from state departments and the mounting PSPCL dues on its books. ## Punjab power subsidy PIL reaches the Chief Secretary During the hearing, Advocate General Maninderjit Singh Bedi raised a preliminary objection to the maintainability of the petition, questioning the credentials and antecedents of the petitioner. The Bench, however, remarked that the state should address the matter on merits rather than repeatedly raising objections to maintainability — a pointed observation that set the tone for the proceedings. The court asked the petitioner to establish his credentials and antecedents. The petitioner read out a paragraph from his affidavit, but the court found it unsatisfactory. The petitioner acknowledged the deficiency and sought permission to rectify it. The court was initially inclined to dismiss the petition and asked the petitioner to withdraw it, but allowed him to file an additional affidavit setting out his credentials. The state must now place details of the Punjab power subsidy arrears before the court. The Advocate General submitted that the objections were grounded in Punjab and Haryana's Maintainability of Public Interest Litigation Rules, 2010, and settled Supreme Court precedents, arguing that maintainability must be decided at the threshold irrespective of the gravity of the public cause involved. ## Court questions repeated maintainability objections The Bench's remark that the state should argue on merits rather than hide behind procedural objections is significant. The court's decision to seek the Chief Secretary's affidavit signals that it wants the state's highest bureaucrat to take personal responsibility for the response. The Punjab power subsidy regime covers free and subsidised electricity to agricultural consumers and other categories, with amounts running into thousands of crores annually. Delays in reimbursement directly affect PSPCL's cash flows and its ability to pay generators, maintain infrastructure and service debt. ## Punjab power subsidy arrears strain PSPCL finances PSPCL, the state's power distribution utility, has repeatedly flagged the gap between the subsidy announced by the government and the compensation actually released. When payments lag, the utility is forced to borrow to bridge the gap, pushing up interest costs that are ultimately passed on to consumers. Clearing the Punjab power subsidy backlog and the PSPCL dues owed by departments would ease that pressure significantly. The petition also raises the question of unpaid electricity bills of government departments themselves — a parallel drain on the utility's revenues. Successive governments have promised to clear departmental dues, but the problem has persisted, leaving large PSPCL dues on the utility's books. ## What the Chief Secretary's affidavit must establish The affidavit will need to set out the exact quantum of Punjab power subsidy owed to PSPCL, the timeline for its release, and the steps taken to clear departmental dues. By calling for the Chief Secretary's personal affidavit, the Punjab and Haryana High Court has ensured that the response cannot be a routine bureaucratic reply — it must carry the authority of the state's top civil servant. The matter will now be heard after the affidavits are filed before the Punjab and Haryana High Court. For PSPCL and its consumers, the case will decide whether the Punjab power subsidy backlog is finally cleared or continues to weigh on the utility's balance sheet — a Punjab power subsidy question with implications far beyond one courtroom.