Power Minister R K Singh has cautioned states like Punjab against falling into a debt trap due to borrowing money for populist schemes such as providing free electricity. In an interview, Singh emphasized that electricity, like any other commodity, has a cost associated with its generation, and states must have the financial means to pay generating utilities.
Singh pointed out that states resorting to such populist measures are forcing themselves into further debt, jeopardizing their financial stability. He cited Punjab as an example, where the Aam Aadmi Party (AAP) government’s initiatives, including free power up to 300 units per household, have contributed to substantial borrowing, exacerbating the state’s already high debt burden.
Singh expressed concerns about the long-term consequences of such borrowing, warning that it could hinder investments in essential infrastructure like roads, hospitals, and schools for future generations. He also highlighted efforts to reduce power pilferage and outstanding dues, emphasizing the importance of financial discipline in the power sector.
Regarding the proposed amendments to the Electricity Act 2003 to allow for multiple service providers, Singh stated his intention to reintroduce the Electricity (Amendment) Bill, 2022, in Parliament to promote competition and improve services. Additionally, Singh reiterated India’s commitment to achieving its ambitious renewable energy targets, with significant progress already made towards the goal of 500 GW by 2030. Finally, he underscored the need for viable energy storage solutions to support the phased-out of coal-based thermal power generation capacity.
