The Indian Army has formally requested the state government for the allocation of 300 units of free electricity per month for its personnel stationed in Punjab. This appeal has placed the government in a challenging position, as it is already contending with significant financial pressures stemming from its domestic power subsidy obligations.
In a letter addressed to the state government, the South Western Command of the Indian Army highlighted that while the government has been providing 300 units of complimentary power to domestic consumers since July 2022, this benefit has yet to be extended to service members and defense civilians living in married quarters within cantonments and military stations across Punjab.
Officials from the Punjab government have opined that providing a power subsidy to individuals residing in cantonments and military stations is not feasible, as these locations are supplied with bulk electricity. The subsidy program is designed for individual domestic consumers, and officials maintain that extending this benefit to service personnel would deviate from the established protocol.
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Moreover, the Indian Army has pointed out that a similar initiative is currently in place in Delhi, where the government extends free power provisions to service personnel. This demand is actively being deliberated at high levels within the state government, reflecting the complexity of the issue.
Currently, over 100,000 troops are stationed in Punjab, with all officers and junior commissioned officers eligible for family accommodations, as well as 35% of enlisted personnel. Additionally, numerous civilian employees of the Defence Ministry residing in military establishments are also qualified for accommodation.
The financial implications of accommodating this request could be substantial. The anticipated domestic power subsidy burden on the state government is projected to reach Rs 8,785 crore, marking an increase of Rs 1,550 crore compared to the previous fiscal year. If the government were to approve the demand for free power for military personnel, it would effectively have to expand the offer to other military formations located in Jalandhar, Ferozepur, Patiala, Amritsar, and Pathankot.
The government is grappling with its own fiscal instability while attempting to meet its current obligations to the Punjab State Power Corporation Limited (PSPCL). As of mid-November, the state had disbursed only Rs 4,508.2 crore of the total subsidy required for free domestic power, out of a total estimated subsidy bill of Rs 20,477 crore, of which Rs 11,401.26 crore has been settled. In the current month, aside from the Rs 200 crore subsidy to PSPCL, the government provided a grant-in-aid totaling Rs 2,387 crore to the utility.
As discussions continue within the state government regarding the Army’s request for power subsidies, the balancing act between supporting military personnel and managing the state’s power subsidy budget remains a delicate matter.
