CICU Takes Strong Stand Before PSERC to Safeguard Ludhiana Industry

Ludhiana, January 15, 2026: At a time when Punjab’s industrial sector is grappling with rising costs, power uncertainty, and regulatory pressures, the Chamber of Industrial & Commercial Undertakings (CICU), Ludhiana, demonstrated decisive leadership by forcefully presenting the concerns of industry before the Punjab State Electricity Regulatory Commission (PSERC). Led by its President, CICU appeared before the Hon’ble Commission during the public hearing on the True-Up for FY 2024-25 and the Forecast of Aggregate Revenue Requirement (ARR) and Determination of Tariff for FY 2026-27. The Chamber submitted a detailed and well-structured memorandum, highlighting not only tariff-related issues but also the deeper structural and operational problems faced by industrial consumers in Ludhiana.
Speaking on behalf of thousands of MSMEs and large manufacturing units, the CICU President emphasized that Ludhiana is the industrial backbone of Punjab, contributing significantly through textiles, auto components, bicycle and sports goods, foundries, and engineering sectors. Any policy decision that ignores ground realities in this cluster, he cautioned, would directly affect employment, exports, and the overall industrial ecosystem of the state.
Demand for Transparency in True-Up Exercise
CICU took a firm position on the True-Up for FY 2024-25, asserting that the exercise must be strictly based on audited accounts and verified data, in line with PSERC regulations. The Chamber urged the Commission to clearly distinguish between controllable and uncontrollable costs and to ensure that inefficiencies are not passed on to consumers. The CICU President particularly flagged concerns over Power Purchase Costs, pointing out that expenses arising from poor demand forecasting, excessive short-term market purchases, and DSM penalties are controllable in nature. “Industry should not be penalised for systemic inefficiencies of the utility,” he stated. Similarly, CICU called for strict scrutiny of Operation & Maintenance and employee costs, urging the Commission to benchmark them against historical performance and efficiency norms.
Realistic ARR Forecast Sought
On the forecast of ARR for FY 2026-27, CICU advocated a realistic and consumer-oriented approach, factoring in moderating industrial growth, energy conservation efforts, and increasing adoption of rooftop solar by industries. The Chamber stressed the need for a least-cost power procurement strategy, reducing dependence on volatile spot markets. It also called for clear AT&C loss reduction targets and justification for capital expenditure proposals, insisting that investments must translate into measurable improvements in power quality and reliability.
Opposition to Disproportionate Tariff Hikes
CICU strongly objected to any steep or uneven tariff increases, particularly on industrial consumers. The President underlined that Ludhiana’s industries are already battling high raw material costs, logistics challenges, and stiff inter-state competition. The Chamber reiterated its long-standing demand for a progressive reduction in cross-subsidy, in line with the National Tariff Policy, and cautioned against the creation of fresh regulatory assets that would burden future tariffs.
Ground Realities Placed on Record
Going beyond tariff mathematics, CICU placed on record the critical issues affecting day-to-day industrial operations in Ludhiana. These include frequent unscheduled power cuts, feeder trippings, voltage fluctuations in areas like Focal Point, Giaspura, and Dhandari Kalan, and an acute shortage of technical staff at substations. The Chamber highlighted the growing crisis surrounding Power Quality meters, noting that industries are being penalised despite a nationwide shortage and exorbitant prices due to limited vendors. Billing errors, including incorrect multiplying factors leading to retrospective demands running into crores, were also flagged as a matter of grave concern. CICU further drew attention to mounting industrial arrears exceeding ₹44 crore, aggressive disconnection drives, and operational instability caused by engineer protests and staff agitations within PSPCL.
Constructive Solutions Proposed
Reinforcing its role as a responsible industry body, CICU also offered practical and actionable solutions. These included fast-tracking the ₹160-crore power infrastructure modernisation plan, implementing a “Clean Pole Policy” to remove third-party cables, granting a moratorium on PQ meter penalties, and providing a fixed industrial tariff for five years to ensure predictability. The Chamber also demanded urgent recruitment to fill technical vacancies, creation of dedicated industrial divisions, and stronger incentives for rooftop solar and energy efficiency initiatives.
Industry’s Collective Voice
Concluding the submission, the CICU President urged PSERC to strike a careful balance between the financial viability of the utility and the survival of Punjab’s industry. “A competitive industrial tariff is not a concession; it is an investment in Punjab’s economic future,” he asserted. Through its proactive and detailed intervention, CICU once again reaffirmed its position as the strongest and most credible voice of Ludhiana’s industry, committed to protecting industrial interests while engaging constructively with regulators. The hearing marked yet another step in CICU’s sustained efforts to ensure a reliable, affordable, and industry-friendly power framework for Punjab.