Punjab’s ongoing power theft crisis threatens financial stability and reliable electricity supply.
Chandigarh: Punjab is facing a significant financial blow, losing Rs 2,600 crores annually to power theft, according to recent data from the Punjab State Power Corporation Limited (PSPCL). Despite the state government’s efforts to provide free electricity to domestic consumers, power theft has surged, compounding the strain on Punjab’s already burdened energy sector.
This alarming situation has come up, despite the Punjab government offering a subsidy of over Rs 6,000 crores, in lieu of the free 300 units of electricity provided to consumers. In addition, a further Rs 1,400 crores has been allocated as a rebate for domestic consumers with up to 7KW load under the Rs 2.50 per unit scheme during the 2023-24 fiscal year. These initiatives were meant to ease the financial burden on households, but rampant power theft continues to undermine the state’s efforts to stabilise the electricity supply system.
Major theft-prone areas identified
Out of the Rs 2,600 crores lost to power theft annually, 20 PSPCL divisions across Punjab’s border, west, and south zones account for half the amount—approximately Rs 1,300 crores. These divisions have been identified as notorious theft-prone areas, where electricity theft is a rampant issue, contributing significantly to the state’s financial woes.
The border zone leads as the most affected region, followed by the west zone and the south zone. Specifically, Tarn Taran, Ferozepur, Suburban Amritsar, and Sangrur circles have been flagged as major contributors to power theft, each housing several divisions, notorious for revenue losses. Tarn Taran circle alone, with its four divisions, stands out as a critical hotspot for power theft.
Among the worst-hit divisions, Bhikhiwind, Patti, and Zira, each reported revenue losses exceeding Rs 110 crores, with West Amritsar also facing a significant shortfall of Rs 92 crores. The total loss from just these four divisions is around Rs 435 crores, highlighting the depth of the problem in these regions.
Alarming distribution losses highlight power theft crisis
The extent of power theft in these areas is reflected in their distribution losses. Six rural divisions report distribution losses of more than 50%, with Bhikhiwind, Patti, Zira, and West Amritsar leading the list. Bhikhiwind, the hardest hit, recorded an alarming 73.32% loss, followed by Patti with 65.02%, Zira with 64.9%, and West Amritsar with 62.96%.
These figures underscore the systemic nature of the problem, and the difficulty PSPCL faces in recovering the revenue lost to electricity theft.
Rural areas account for a significant portion of these losses, contributing approximately Rs 900 crores annually in theft-related revenue shortfalls, while urban areas add Rs 400 crores.
In urban zones, divisions such as Patti, Ajnala, Bhagta Bhai, and West Amritsar have been flagged as the top contributors to theft-related losses, with revenue shortfalls ranging from Rs 56 crores to Rs 113 crores annually across the top 14 divisions.
Political sensitivities fuel power theft challenges
Retired engineer V.K. Gupta, who has been closely observing the situation, attributes the significant losses in these divisions to rampant power theft in politically sensitive areas. Many of these theft-prone divisions are located along the border belt, which has long been known as a hotspot for illegal activities, including electricity theft. The proximity to the border and political sensitivities in these regions make enforcement challenging, as local authorities often face resistance when attempting to crack down on offenders.
Gupta’s analysis points to the complexity of addressing power theft in areas where political influence and social dynamics hinder law enforcement efforts. In many cases, power theft becomes a systemic issue with deep-rooted connections to local power structures, making it difficult to curb without strong, coordinated interventions from both, the state and central governments.
Government intensifies action against power theft
In response to the growing menace of power theft, the Punjab government has initiated several measures to curb this practice. In August alone, 296 First Information Reports (FIRs) were registered at anti-power theft police stations across the state. This aggressive legal approach signals the government’s intent to take the issue seriously and hold offenders accountable. The state government has also emphasised the urgent need to ramp up efforts against power theft, which poses a major threat to the financial stability and operational efficiency of the PSPCL. Chief Minister Bhagwant Mann has consistently highlighted power theft as one of the biggest challenges faced by the state’s energy sector. The government is committed to enhancing surveillance mechanisms in high-theft areas, and improving the legal framework to ensure swift and stringent action against violators.
PSPCL’s Technology-Driven Strategies Against Power Theft
PSPCL is expected to play a crucial role in addressing the issue.
The corporation is set to adopt more technology-driven solutions to combat power theft, including smart metering and enhanced surveillance systems in theft-prone zones.
Additionally, efforts to seize properties of repeat offenders and power thieves are being considered as part of a larger crackdown on illegal electricity consumption.
The financial strain caused by power theft not only affects PSPCL’s ability to deliver reliable electricity to the public, but also hampers the state’s overall economic growth. Experts argue that unless urgent steps are taken to address this growing problem, Punjab could face even greater revenue losses in the coming years, further straining the state’s finances.
With border and west zones at the center of this issue, and politically sensitive areas complicating enforcement, the state government must intensify its efforts to curb this menace. Through stronger legal frameworks, enhanced surveillance, and public awareness campaigns, Punjab hopes to combat power theft and ensure a more stable and secure electricity supply for its residents.