Punjab waives Rs 518 crore in power bill penalties and interest
Chief minister Bhagwant Mann announced a settlement scheme for 24.86 lakh domestic electricity consumers to ease the burden on households.
Punjab Chief Minister Bhagwant Mann announced a One-Time Settlement (OTS) scheme on Friday for 24.86 lakh domestic electricity consumers. According to The Times of India, the initiative offers a 100 per cent waiver on interest and penalties for pending bills up to March 31, 2026.
The scheme will waive Rs 518 crore out of total outstanding dues amounting to approximately Rs 2,516 crore. Under this plan, consumers are required to pay only the principal amount. Mann stated that power lines for disconnected connections will be restored once the dues are settled.
The program is set to begin following a formal notification on Saturday and will be available for a 45-day period. Mann said the move is a commitment to ease the lives of ordinary households rather than just a financial concession.
Applicants must pay 25 per cent of the outstanding principal amount upfront, with the remaining 75 per cent payable in two instalments over one year. Mann noted that households with financial difficulties may receive an extra six-month extension.
The Punjab State Power Corporation Limited (PSPCL) will send itemised OTS bills to eligible consumers within seven days. These bills will show the waived surcharges and the net principal amount due, with revised balances updating automatically in online accounts after payment.
Mann urged eligible consumers to use the 45-day window to clear their accounts without paying additional interest or penalties.