The Planning Commission on Tuesday suggested a slew of measures to reform Punjab’s power sector, including charging differential peak and non-peak tariffs for commercial users in the state.

At a meeting to finalise the state’s Annual Plan for 2008-09 on Tuesday, Chief Minister Parkash Singh Badal discussed at length the issues concerning the power sector with Deputy Chairman Montek Singh Ahluwalia.

Pointing out that the state, which gives free power to agriculture consumers, which, in turn, leads over exploitation of ground water, needs to set a benchmark rate for supplying power for agriculture use, the Commission said it would help in making a distinction between supply to rich and poor farmers.

Though retail tariffs are a state subject, given the gap in cost of supply of power and rate of recovery, the state should attempt to charge differential rates to commercial users and recover more money for peak time usage, it said.

The state Government, on its part, submitted that the Centre should release the pending incentive of around Rs 140 crore under the ARDRP that has been held back on account of the free power supply scheme of the state. It was pointed out that the incentive dates back to 2003-04, while the free power scheme was announced in September 2005.

The state Government also pointed to the shortage of power in the state and wanted the Centre to give 49 per cent equity in the upcoming Rajasthan Atomic Power Project (Units of 7 & 8).

Meanwhile, the annual plan for the state for 2008-09 has been pegged at Rs 6,210 crore which reflects a jump of around 22 per cent, as compared to the plan size for 2007-08. This year’s plan also includes a special assistance of Rs 200 crore for projects of special interest to the state.

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