FOPSIA president presents certain facts of PSPCL to PSERC Chairman Romila Dubey

Ludhiana, February 6, 2015: Federation of Punjab Small Industries Association (FOPSIA) president Badish K. Jindal  has presenting certain facts of PSPCL to PSERC Chairman Romila Dubey. In a statement here today, he said these facts are as under: 

•         High Employee cost and decreasing number of employees:

It was stated that The number of employees in  2013-14 was 48815 whereas the number of employees in 2015-16 will be 37269. Whereas PSPCL was paying 4000 crores in 2013-14 and prposed 5480 crores for 2015-16 which is fully unjustified. The progressive funding of terminal benefit of 830 crores to employees is also not advisable.

•         Purchase of Power

In 2013-14 the PSPCL purchased the power at 4.78 paisa per unit whereas in 2015-16 the power purchase cost will be 4.71 paisa but he fact is that we will purchase the bulk power from sterilte Talwandi at 2.47 paisa and L&T Rajpura at 2.11paisa per unit. So the purchase cost should be much lower. The biggest blunder in purchase will be from L&T of 1287 million units at 1673 crores with  average cost price of 12.71 paisa per unit due to under requirement by the state and over production of the company.

•         Price of Coal and Oil

The PSPCL is planning to procure imported coal of 683 crores at 9.30 Rs per Kilo whereas they are buying the domestic  coal at 3.80 paisa per kilo. The cost of power production with the imported coal would be 5.30 Rs per unit which will be much higher than the average cost of 2.16 paisa from the domestic coal. The prices of oil and Coal are expected to come down to around 50% in the year 2015-16 as compared to 2014-15 but PSPCL is demanding the same price of 2014-15 in 2015-16.  

•         The PSPCL is moving towards bankruptcy

The asset value of Rs. 31528 crores in comparison with Liabilities of Rs. 23912 crores as loans and State Equity of Rs.6100 crores. So by 2015-16 the PSPCL will be fully bankrupt. Further it was opposed that PSPCL is planning to pay Rs.942 crore to the state as return on Equity. The interest paid by PSPCL of 2593 crores due to the bad policies of PSPCL is an additional burden on the consumer. It was also shocking that PSPCL is paying the interest upto 13.50% p.a.

•         PSPCL ignoring the orders of the PSERC

It was also objected that PSPCL is fully ignoring the orders of PSERC and even after the orders of the  PSERC, the expenditure by PSPCL is always as per their desire. For example, last year the PSPCL spent 2000 crores more than the orders passed by the PSERC.

•         Fake Data of Transmission & Distribution Losses

The PSPCL is preparing a fake data of below 16% TOD Losses whereas there is no metering of agriculture Load. Under Such circumstances the figures of TOD Losses of 16% are just baseless and highly objectionable.

•         High Capital Expenditure on Production and Distribution

In the year 2013-14, the capital expenditure on production was 253 crores and on distribution it was 1216 crores whereas PSPCL is demanding production expenditure of 1037 Crores and 1775 crores on distribution for 2015-16. The Travelling cost is calculated to around 34 crores and other expenditures without any detail demanded at 88.32 crores which is highly objectionable.

•         Misuse of Cross Subsidy

Even after the Gadget Notification of Govt of India Minstry of Power on Tariff policy, it was clear that states will go away with the cross subsidy by 2013, whereas the PSPCL is supposed to be imposing the cross subsidy of 20% on all sectors against agriculture.

•         Investment Plans for 2015-16

The PSPCL is demanding an amount of Rs. 3328 crores for the investment on the new projects for the Year 2015-16 whereas there is no requirement of such projects after the installation of private projects in Punjab.

•         Wrongly Shown non tariff income

The PSPCL have wrongly shown their non tariff income to the estimate of approx. 950 crores in 2013-14 to 997 crores in 2015-16 whereas it is a hard fact that the non tariff income of PSPCL have been increased manifolds due to the decisions of KVAH and contract Load.