The issue of paying off enhanced power tariff from the state treasury has prompted state finance minister Manpreet Singh Badal to come out in the open against Punjab chief minister Parkash Singh Badal.

“As Punjab’s finance minister, I am sad over the decision of paying off the enhanced power tariff from the state treasury,” Badal has said.

Referring to the implementation of the Punjab CM’s decision, Manpreet Badal said, “I don’t know how it will be implemented in view of the poor fiscal condition of Punjab.”

Badal was reacting to the decision during his visit to Jalandhar after the Punjab government decided on January 8 to bear the cost of enhanced power tariff hike.

Bowing to the pressure by alliance partner BJP, Parkash Singh Badal had announced last week to off set the enhanced power tariff for the domestic, commercial and industrial sectors. As per the decision while the revised tariff for the domestic sector would be paid for the whole fiscal year (April 1, 2009, to March 31, 2010) from the state treasury to the Punjab State Electricity Board (PSEB), in case of commercial and industrial sectors, the state would pay the revised tariff of six months.

Troubled by the poor fiscal health of the state, Manpreet who is a close aide of chief minister, Parkash Singh Badal had earlier several times made his views known on the subsidies given to the farm and other sectors.

The Punjab FM had been arguing that at this stage, the state was not in a position to give subsidies and these required to be rationalised considering the fiscal health of the state. He had been saying some crucial sectors were facing a paucity of funds owing to the subsidy factor.

Even couple of days before a meeting called by the Shiromani Akali Dal (SAD) at Shimla in Himachal Pradesh, the state finance minister had come out in the open saying that all kind of subsidies and freebiees must go in the interest of people and economy of Punjab.

The Power Regulatory Authority in Punjab had announced a hike of 12.42% hike on domestic, commercial and industrial consumers with effect from April 1, 2009.

However, it was not implemented soon coming to the fore the differences between the alliance partners on the issue.