Govt fails to pay subsidy to PSEB The Punjab government has failed to comply with the directive of the Punjab State Electricity Regulatory Commission (PSERC) to pay subsidy on account of free power to agricultural pump sets in instalments in advance at the beginning of each quarter. The commission in its order on July 4 stipulated the government would pay subsidy of Rs 2,601 crore due to the PSEB in 2008-09 in quarterly instalments and directed the board to submit a status report of the payment within the first fortnight of each quarter. It directed the board to submit the first such report of payments made in the first two quarters before July 15. According to sources, the PSEB while complying with this direction has submitted it has received subsidy amount of Rs 167 crore in May and Rs 333 crore in June. This amounts to total subsidy of Rs 500 crore paid till June 30, the last day for paying the total subsidy amount of Rs 1,300 crore due for the first two quarters of this year. The PSEB, however, also told the commission that bill of Rs 167 crore received from the government on account of subsidy was pending for clearance in the Treasury office. The government, which has failed to submit the subsidy quotient in advance quarterly instalments, has also failed to give it in advance for the respective months. The PSEB on its part while informing about the money received, also told the commission it had already requested the state government to release the subsidy on quarterly basis as determined by the tariff order. Earlier, the state had through its chief secretary assured the commission that in keeping with the policy to provide subsidy to agricultural pump set owners as well as Scheduled Caste and below poverty line consumers, it would provide a subsidy of Rs 2,479 crore for 2008-09 to the board. It had also agreed to pay arrears of Rs 121 crore for 2007-08 as determined by the commission.