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Punjab Government proposes reduction in the RPO compliance for FY 2019-20 and FY 2020-21

As the country fights an unprecedented crisis, the Punjab Government recently took some steps to give some relief to the medium & large scale industries.  Due to the mandatory lock down in these industries, the state government issued an order stating exemption of fixed charges – INR 120/kVA & INR 165/kVA for the medium & large scale industrial units for two months applicable from 23rd March 2020. The energy charges for these units will be in proportion to the reduction of the fixed  charges and will not be applicable for any subsidy. Punjab consists of manufacturing units of machines & hand tools, printing & paper machinery, auto parts & electrical switch gears. Punjab also produces approximately 75% of bicycle and bicycle parts.
Along with this, the order also suggested a reduction in the Renewable Purchase Obligation percent from for FY 2019-20 & FY 2020-21 by 1.50% and 2.00% respectively.

                                    Renewable Purchase Obligation compliance percent in Punjab

Further, the Punjab State Electricity Regulatory Commission had requested comments, suggestions and/or objections from all the stakeholders till earlier this month before they implemented the mentioned changes.