Punjab Government Reverses Power Subsidy Amid Backlash

The Punjab Cabinet has rescinded the earlier decision of providing a Rs 3 per unit power subsidy for domestic consumers, aimed to save the state exchequer Rs 1,500-1,800 crore annually. Despite this, the free 300 units of electricity per month will continue. Opposition parties criticized the move, labeling it a financial burden on consumers.

The Punjab Cabinet on Thursday rescinded the previous government's decision to offer a Rs 3 per unit power subsidy to domestic consumers. This reversal is expected to boost state revenues by Rs 1,500-1,800 crore annually.

Finance Minister Harpal Singh Cheema assured that the provision of 300 units of free electricity per month will remain in place. Opposition parties, however, denounced the move, claiming it imposes additional financial hardships on electricity consumers.

The rollback decision was formalized during a Cabinet meeting under Chief Minister Bhagwant Mann. While opposition leaders like Punjab Congress chief Amrinder Singh Raja Warring and Shiromani Akali Dal leader Bikram Majithia lambasted the move, Cheema defended it as a step towards encouraging judicious electricity consumption.

(With inputs from agencies.)