Apropos the editorial ‘Power subsidy reforms’ (June 6), the commission has rightly suggested that landholding size should be considered for giving free power to the agriculture sector. The suggestion to charge a flat rate of Rs 100/hp/per month from farmers owning 4 hectares or more should be considered as the first step. One of the reasons the power sector is in a mess is that the PSPCL is completely dependent upon subsidy from the state government which is increasing every year. As per the PSERC tariff order for the current financial year, the subsidy amount is Rs 8,949 crore, with an arrear of  Rs 4,768 crore. Thus the total subsidy to be paid by the Punjab Government  is Rs 13,718 crore. Under the present scenario, it will not be possible for the government to pay full subsidy this year also. To avoid transmission losses the PSPCL should go for automation. Power subsidy is a major drain on Punjab’s budget. Subsidies should be need based and not a vote-garnering  tool.

VK Gupta, Chandigarh