Ludhiana: NOC waiver on new connections boost PSPCL revenue by 50% in month

Ludhiana: NOC Waiver on New Connections Boost PSPCL Revenue by 50% in Month

In a significant move to ease access to electricity for residents in unapproved and unauthorized colonies, the Punjab State Power Corporation Limited (PSPCL) has seen a twofold surge in power connection applications in Ludhiana following the waiver of the No Objection Certificate (NOC) requirement for new connections. The move, which was implemented on November 17, 2025, has not only brought relief to residents but also boosted PSPCL's revenue by a staggering 50% in just a month.

The waiver, which was issued by PSPCL, has simplified the process of obtaining new electricity connections in Ludhiana. Previously, applicants needed to submit an NOC, regularisation certificate, or an approved building plan from authorities like the municipal corporation or Greater Ludhiana Area Development Authority (GLADA). However, this requirement often led to delays or rejections for constructions started post-plot registration without approvals. The new policy eases access to electricity while ensuring that applicants submit a written undertaking that the connection can be disconnected if declared illegal later and pay an extra security deposit equal to service connection charges to cover potential dismantling costs.

Chief Engineer Jagdev Hans of PSPCL noted that the move was expected to bring in more applications and urged residents to use official portals or offices to avoid agents who overcharge. While PSPCL officials have not confirmed a precise 50% revenue boost in one month, the verified surge in applications is a clear indicator of the pent-up demand for electricity in unapproved areas.

The waiver has been seen as a positive move by PSPCL officials, who believe that it will reduce delays, curb illegal connections and power theft in unauthorised colonies, and increase revenue through proper metering. "This move will not only benefit consumers but also PSPCL revenue," said Chief Engineer Jagdev Hans. "Residents in unapproved areas will now be able to access electricity without facing documentation hurdles, and we expect to see further rises in applications in the coming days."

The policy has also been welcomed by consumers, who see it as a relief from the earlier documentation requirements. However, critics point out that the undertaking and security deposit add accountability to the process without fully blocking access to electricity. "While the policy is a step in the right direction, it's essential to ensure that residents are aware of the risks involved and the conditions attached to the new connections," said a resident.

The PSPCL's move is part of a broader effort to tackle the issue of unauthorised connections and power theft in unapproved areas. The corporation has historically required NOCs or approved plans for new connections to ensure compliance with urban planning regulations. However, this requirement often led to backlogs, especially in unauthorised colonies prone to power theft via illegal tapping. The November 17, 2025, notification addresses this by prioritising access with safeguards, amid broader PSPCL financial context.

PSERC's FY 2025-26 tariff order rejected PSPCL's requested hike despite a reported Rs 5,090.89 crore revenue deficit petition, affirming a surplus from existing tariffs. Recent orders also tackle unauthorised load increases and surcharges (e.g., CC 31-2025 on October 3, 2025). The implications of the PSPCL's move are far-reaching, encouraging formal applications over agents who overcharge and supporting the corporation's efforts to tackle unauthorised connections and power theft.

In conclusion, the PSPCL's waiver of the NOC requirement for new connections in Ludhiana has brought relief to residents and boosted the corporation's revenue by 50% in just a month. The move is a significant step towards easing access to electricity in unapproved areas and reducing power theft, and it's essential to ensure that residents are aware of the risks involved and the conditions attached to the new connections.