Domestic electricity users can pay only the principal amount as the state waives Rs 518 crore in penalties and interest.
Punjab Chief Minister Bhagwant Mann on Friday announced a one-time settlement (OTS) scheme for domestic electricity consumers who have defaulted on their bills. According to The New Indian Express, the scheme aims to provide relief to more than 24 lakh families by waiving all interest and penalties on outstanding dues up to March 31, 2026.
The total outstanding amount for these consumers is Rs 2,516 crore. Under the new initiative, the state government will waive Rs 518 crore in accumulated charges. Mann stated that the move is intended to ensure that financial difficulties do not become an extra burden on ordinary households.
Beneficiaries must pay 25 per cent of their principal bill amount immediately. The remaining 75 per cent can be cleared through two six-monthly instalments over one year. Consumers facing extreme financial hardship may also be granted an additional six-month extension to complete their payments.
The Chief Minister noted that electricity connections previously disconnected due to unpaid bills will be restored once the principal amount is paid. He said the government believes in standing with people during difficult times rather than just collecting revenue.
The Punjab State Power Corporation Limited (PSPCL) will send special OTS notices and bills to eligible consumers within seven days. The official notification is expected to be issued on Saturday, November 14, and the scheme will take effect immediately. Consumers will have a 45-day window from the notification date to avail of the benefits.
