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Punjab losing 2,600 crore annually as power thefts bleed coffers dry

By, Patiala
Oct 04, 2024 08:44 AM IST

According to the Punjab State Power Corporation Limited, there has been a 30% rise in losses due to power theft. In the 2023-24 financial year, the power theft loss amounted to ₹2,600 crore, an increase from about ₹2,000 crore loss suffered a year before.

Even with 300 units of free electricity per month in the state, the Punjab State Power Corporation Limited (PSPCL) is losing 2,600 crore annually to power thefts.

A Punjab State Power Corporation Limited employee cutting an illegal connection. Twenty divisions — border zone, west zone and south zone — are notorious for theft and are collectively responsible for around <span class='webrupee'>₹</span>1,300 crore, translating to 50% of the losses. (HT file photo)
A Punjab State Power Corporation Limited employee cutting an illegal connection. Twenty divisions — border zone, west zone and south zone — are notorious for theft and are collectively responsible for around 1,300 crore, translating to 50% of the losses. (HT file photo)

According to the PSPCL data, there has been a 30% rise in losses due to power theft. In the 2023-24 financial year, the power theft loss amounted to 2,600 crore, a significant increase from about 2,000-crore loss suffered a year before.

According to the PSPCL, 20 divisions— border zone, west zone and south zone — are most notorious for theft and are collectively responsible for around 1,300 crore, translating to nearly 50% of the total losses.

Of these areas, the highest incidence of theft occurred in the border zone, followed by the west and south zones.

“Key hotspots of power thefts include the Tarn Taran circle consisting of four divisions, and the Ferozepur, suburban Amritsar, and Sangrur circles, consisting of three divisions, each. These areas have been identified as major culprits of power thefts,” the official statement by PSPCL added.

The divisions of Bhikhiwind, Patti, and Zira alone incurred revenue losses exceeding 110 crore each, while in West Amritsar the losses were pegged at 92 crore. All these four divisions account for 435 crore losses.

Percentage-wise, the data showed that six PSPCL divisions suffer from distribution losses exceeding 50%. Bhikhiwind leads with a loss rate of 73.32%, followed by Patti at 65.02%, Zira at 64.9%, and West Amritsar at 62.96%.

Additionally, 14 divisions reported annual revenue losses ranging from 56 crore to 113 crore.

A senior PSPCL official pointed to the use of ‘kundi’ connections (bypassing the meter) as a primary modus operandi. “Political patronage and collusion with low-ranking officials also contribute to losses,” the official said, pleading anonymity.

The PSEB Engineers’ Association stressed that tackling electricity theft should be a top priority as it is directly impacting both the reliability and financial sustainability of the sector.

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