Punjab Chief Minister Charanjit Singh Channi  announced slashing of power rates by Rs 3 per unit for domestic consumers and ‘Diwali gift’ for state government employees.

While making the announcement following a Cabinet meeting, Channi said, “We are reducing power tariff by Rs 3 per unit for domestic consumers.”

He confirmed that the Punjab Cabinet approved the Punjab State Power Corporation Limited’s (PSPCL) proposal to terminate GVK Goindwal Sahib PPA, which was providing electricity at Rs 6-7 per unit.

Following the announcement of a 500 MW tender by the Punjab govt, the rate of electricity will be Rs 2.38 per unit.

“Punjab Cabinet has decided to slash power tariff by Rs 3 across slabs. Rs 1.19 will be the new rate for small consumers,” he added.

Calling it a big Diwali gift for the common people, he said that the decision will come into effect immediately. He added that according to a survey conducted by his government, people wanted quality and cheap power.

The slashing of power tariff is expected to cost the public exchequer around Rs 3,316 crore.

During the press conference, the Punjab Chief Minister also said, “On the occasion of Diwali, I wanted to give a gift to the state govt employees. They would have never had such a gift till date. The employees were on strike even before I became the CM. I spoke with them this morning.”

“We discussed the gift, they even gave me a commitment that they won’t go on a strike, whatever might the situation be, as long as this govt is in power. They will sit and discuss the issue,” he added.

The Punjab government announced an 11 per cent hike in dearness allowance (DA) for state government employees.