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# Punjab waives Rs 518 crore in power bill interest and penalties
- URL: https://newsanek.com/punjab-power-bill-penalty-waiver-518-crore/
- Published: 2026-11-13T12:31:57.000Z
- Updated: 2026-11-13T12:50:49.000Z
- Description: The Punjab government will waive interest and penalties on unpaid domestic power bills under a one-time settlement scheme. Consumers can pay only the principal amount in instalments, and the scheme is open for 45 days.
- Author: Kumar Ujjwal
- Tags: India, Punjab, Explainer, #sub-money-finance, #state-punjab, #state-desk, #region-north, #sm-58, #smemo-useful, #running

The Punjab government will waive Rs 518 crore in interest and penalties on pending electricity bills.

The move is aimed at nearly 24.86 lakh domestic consumers across the state. One lakh equals 100,000.

Chief Minister Bhagwant Mann announced the waiver on Friday. It is part of a one-time settlement (OTS) scheme.

Under such a scheme, people clear old dues in one agreed package.

### Key points

- Interest and penalties of Rs 518 crore will be waived.
- Consumers pay only the principal amount of their bills.
- The scheme stays open for 45 days.
- Disconnected homes can get power back after settling dues.

## So who can benefit from this scheme?

The scheme covers electricity bills outstanding as of March 31, 2026.

It applies to domestic consumers in both rural and urban areas.

The total outstanding amount stood at Rs 2,516 crore. This includes the Rs 518 crore in interest and penalties.

After the waiver, about Rs 1,998 crore in principal dues will remain payable.

## How will consumers pay under the new plan?

Consumers must first deposit 25 percent of the principal amount. The remaining 75 percent can be paid in two instalments.

These instalments are due at six-month intervals.

How the Punjab power bill settlement works

1. *1*

**Deposit 25% of principal**Consumers first pay 25 percent of the principal amount.
2. *2*

**Pay remaining 75% in two parts**The balance is paid in two instalments due at six-month intervals.
3. *3*

**Receive revised bill**Revised bills reflecting the waiver are delivered directly to eligible households.
4. *4*

**Restore disconnected connection**Homes cut off for unpaid bills can get connections restored after meeting settlement conditions.

Graphic: News Anek, from the facts in this report

Consumers do not need to visit government offices to apply.

Revised bills reflecting the waiver will be delivered directly to eligible households.

## What happens next for disconnected homes?

Households whose connections were cut for unpaid bills can get them restored.

This happens after they meet the settlement conditions.

The chief minister also said the existing 600 free units of electricity over a two-month billing cycle will continue.

The scheme remains open for 45 days, so eligible consumers should act within that time.

Explainer

### What happened before

- The scheme covers electricity bills that were outstanding as of March 31, 2026.
- The state already gives 600 units of free electricity over a two-month billing cycle.

### Why it matters

Many домestic households with unpaid bills could clear their dues at a lower cost.

### What to watch next

- The scheme stays open for 45 days, and eligible consumers can choose a staggered payment plan.

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### Sources

- [The Statesman: Punjab govt waives Rs 518 crore in power bill penalties, interest; 24.86 lakh consumers to benefit](https://www.thestatesman.com/cities/chandigarh/punjab-govt-waives-rs-518-crore-in-power-bill-penalties-interest-24-86-lakh-consumers-to-benefit-1503662041.html?ref=newsanek.com)