Ludhiana, May 25
The Chamber of Industrial & Commercial Undertakings (CICU) has urged Punjab State Power Corporation Limited (PSPCL) and Punjab State Electricity Regulatory Commission (PSERC) to enhance the proposed interest rate on advance electricity bill payments from 7.5% to at least 10%, stating that the current rate is insufficient to attract industrial consumers amid the ongoing economic challenges faced by the industry. In a representation submitted to the Chief Engineer (Commercial), PSPCL, Patiala, CICU highlighted that the industrial sector, particularly MSMEs, is presently passing through a difficult phase due to rising operational costs, high interest rates on working capital, increasing competition from neighboring states, and overall market uncertainty.
Upkar Singh Ahuja, President, CICU, stated that while the initiative of offering interest on advance electricity bill payments is a positive step by PSPCL, the proposed rate of 7.5% does not provide adequate financial motivation for industries to block their working capital through advance deposits. He said that industries are already facing severe liquidity pressure and every rupee of working capital is crucial for sustaining production, employment, and business operations. In such circumstances, unless a competitive and attractive interest rate is offered, industries may not find it financially viable to opt for advance electricity bill payments.
CICU emphasized that increasing the interest rate to at least 10% would encourage a larger number of industrial consumers to voluntarily deposit advance bills, thereby ensuring improved cash flow and timely revenue realization for PSPCL. The Chamber further stated that such a move would create a win-win situation for both the power utility and the industrial sector. The Chamber also pointed out that industries in Punjab have consistently supported PSPCL through timely payments and cooperation despite challenging economic conditions. Therefore, introducing a more attractive advance payment scheme would further strengthen confidence and encourage better participation from industrial consumers.
CICU appealed to the PSPCL management and PSERC to positively consider the demand in the larger interest of Punjab’s industrial growth and economic development. The Chamber expressed hope that the authorities would take an industry-friendly decision that would help improve financial discipline while also supporting the liquidity needs of industries. Ahuja further added that Punjab industry has always played a vital role in employment generation, exports, and economic development of the state, and policy measures that support industrial sustainability are the need of the hour. The Chamber reiterated its commitment to continuously raising genuine industrial concerns before the concerned authorities and working collaboratively for the welfare and growth of Punjab industry.
