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Power reforms: Instal prepaid meters or lose funds, Modi govt tells Punjab

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Patiala, March 26

The newly elected Punjab Government faces a challenge following the recent decision of the Centre to withhold power reform funds to the state if it fails to convert all 85,000 smart meters into “prepaid” ones within three months.

In a state, where government departments have Rs 2,000 crore power dues, the project can help cut losses and stop power theft.

The Union Ministry of Power, in its March 10 letter to the Principal Secretary (Power), said that “Punjab has not yet prepared a roadmap for the installation of prepaid smart meters”.

A senior official of the Punjab State Power Corporation Limited (PSPCL) said the fund-starved state would need Rs 8,000 crore to implement the scheme, with only 15 per cent of it coming from the Centre. “Around 15 lakh agricultural consumers in the state will oppose the move for installing smart meters, leave aside prepaid ones,” he said.

Another PSPCL functionary said, “An ordinary meter costs between Rs 550 and Rs 1,500, while the cost of a smart prepaid meter is in the range of Rs 5,500 to Rs 7,000. The government will bear the cost initially, but it will be extracted from consumers over five years. This is the primary opposition to the Centre’s decision.”

To date, Punjab has refused to instal prepaid meters in spite of launching the smart meter project. With a consumer base of more than 1 crore, Punjab loses Rs 1,200 crore through power theft, every year.

“While the prepaid meter industry will gain, the government should give prepaid or postpaid option to consumers. But surely the move will help check power pilferage,” said a power sector expert.

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