Punjab Power Dept Turns Profitable Despite Free Power to 90% Homes for 4 Years, Says CM Bhagwant Mann

Punjab power reforms have transformed the sector, delivering reliable, near-free electricity to most homes, expanding renewable capacity, and strengthening infrastructure with the Goindwal plant acquisition. The changes aim for 24x7 supply, improved irrigation, and greater energy security across the state.

Punjab Chief Minister Bhagwant Singh Mann states that the Punjab power sector has been structurally reshaped under the Aam Aadmi Party government, turning a loss-making department into a profit-making utility while continuing large-scale subsidies. Mann says free electricity now reaches about 90% of homes, power supply is more reliable for all categories of consumers, and key generation, transmission and irrigation projects are moving ahead together.

Mann explains that domestic consumers receive 300 units of free power each month and 600 free units in a billing cycle, which is leaving most families with zero bills. Commercial and industrial tariffs are reduced, farmers get longer daytime supply, and the Punjab State Power Corporation Limited has been awarded an A+ rating, standing second across India, as the government aims at power self-reliance with 24x7 availability.

Punjab power sector tariffs, free electricity and peak demand

Addressing a press conference, Mann says, "The AAP government has set a new record by providing cheap and uninterrupted power supply to every sector. For the first time, power is being supplied regularly to people without additional financial burden," said CM Bhagwant Singh Mann. He says around 90% of households are now receiving zero electricity bills due to the expanded free power scheme.

Describing supply for agriculture, Mann notes, "For the first time, farmers received more than eight hours of power supply during paddy season, with 95% supply ensured during daytime." Mann highlights that the Punjab power sector is also meeting record demand, with peak load touching 16,670 MW on 5 June 2025, surpassing the previous highest level of 16,058 MW on 29 June 2024.

Punjab power sector acquisition and thermal plant performance

Mann stresses that, unlike regions selling public utilities, the Punjab government has bought a private thermal station to strengthen the Punjab power sector. The State paid ₹1,080 crore to acquire the 540 MW Goindwal thermal facility, earlier known as GVK Thermal Power Plant, which has now been renamed after Sri Guru Amar Das Ji, and is described as a very cost-effective purchase.

Referring to the acquisition, Mann states, "A new plant of similar capacity would cost ₹4,320 crore, making this the cheapest deal by any government. The plant earlier known as GVK Thermal Power Plant has been renamed after Sri Guru Amar Das Ji." Mann adds that since the takeover in February 2024, the Guru Amar Das Thermal Plant at Goindwal Sahib has sharply improved its Plant Load Factor.

According to Mann, the Goindwal Sahib unit in the Punjab power sector records PLF rising from 34% earlier to 65% in financial year 2024–25. The plant touches 90% PLF in July 2024 and reaches 82% in July 2025. Mann argues that these numbers show more efficient management and better coal availability, supporting the State’s promise of continuous supply.

Punjab power sector infrastructure, coal supply and green energy

Mann outlines that transmission capacity in the Punjab power sector has increased from 7,400/8,000 MW to 10,400/10,900 MW, which allows higher imports from the national grid when needed. Coal from Pachwara Coal Mine has started arriving again, providing 70 lakh metric tonnes in 2024–25 and saving ₹1,462 crore since October 2022 through cheaper fuel.

Mann further affirms, "There is no coal shortage in any thermal plant, with Ropar having 41 days stock, Lehra Mohabbat 37 days, and Goindwal Sahib 32 days." Mann mentions that the 206 MW Shahpur Kandi Hydel Project is expected to start generation by May 2027, with ₹5,192.51 crore already spent on the project up to September 2025.

Promoting cleaner sources within the Punjab power sector, Mann says, "The share of green energy will be increased from 20% to 80% in the next six years." Mann explains that 2,720 MW of solar capacity has been tied up at tariffs between ₹2.33 and ₹2.97 per unit, compared with ₹15.20 per unit during previous governments, resulting in lower costs for future supply.

Mann further states, "2,062 MW solar is under implementation, 658 MW has been commissioned, and 581 MW rooftop solar has been installed." Detailing network upgrades in the Punjab power sector, Mann asserts, "26 new 66 KV substations have been set up, 194 transformers upgraded, 34 new added, with 2,738 MVA capacity addition and 337 circuit km of new lines."

Punjab power sector irrigation reforms, employment and public safety

Turning to irrigation, Mann says, "When we assumed office, only 22% canal water was being used for irrigation, but today 78% is being utilised, and it will be enhanced to 90% by the coming paddy season." Mann adds, "Bhakra Canal has a capacity of 9,500 cusecs, but due to our efforts, 11,000 cusecs of canal water is now being supplied to farmers."

Mann continues, "In a way, Punjab has created a new Bhakra canal without acquiring even a single inch of land." Mann adds, "For the first time, every single drop of water is being accounted for, boosting agricultural productivity, and free power to the agriculture sector will continue without any review." Mann also announces a scheme to put high-tension lines passing through farms underground.

Mann explains that the underground cable plan for the Punjab power sector will begin from Mann’s native village, where 413 tube wells and 1,100 बिजली poles stand within about 2,000 acres. Mann says this shift will reduce risks to farmers and crops and provide major relief in daily farming operations. The initiative is positioned as a safety and reliability measure.

Detailing jobs in the Punjab power sector, Mann asserts, "Since April 2022, around 9,593 employees have been recruited in PSPCL and PSTCL, including 8,014 direct recruitments and 1,579 jobs on compassionate grounds." Mann adds, "Recruitment for 1,181 posts in PSPCL and 569 in PSTCL is underway and will be completed by June 2026," stressing the employment impact for youth.

Discussing law and order beyond the Punjab power sector, Mann says, "Punjab Police is being upgraded to tackle cybercrime effectively, and strict action will be taken against black sheep colluding with drug smugglers." Mann mentions that, after complaints in Bathinda, police staff posted at one station have already been transferred, signalling action on local concerns.

On crop losses, Mann asserts, "Special Girdawari has been ordered to assess wheat crop damage due to recent weather, and compensation will be provided as per norms after reports from Deputy Commissioners." Mann assures, "The government is committed to safeguarding farmers' interests and will compensate losses caused by natural calamities." Cabinet Minister Sanjeev Arora and other officials are present as Mann outlines these plans.