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.
- 1Deposit 25% of principalConsumers first pay 25 percent of the principal amount.
- 2Pay remaining 75% in two partsThe balance is paid in two instalments due at six-month intervals.
- 3Receive revised billRevised bills reflecting the waiver are delivered directly to eligible households.
- 4Restore disconnected connectionHomes 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.
