CHANDIGARH: Punjab Chief Minister Bhagwant Mann on Friday announced a One-Time Settlement (OTS) scheme for domestic electricity consumers in the state, waiving all penalties and interest on outstanding electricity bills up to March 31, 2026, ANI reported. Addressing a press conference in Chandigarh, Mann said consumers would now be required to pay only the principal amount of their pending bills under the scheme.

Source: ANI via Indian Economic Observer

The Chief Minister said the decision would directly benefit more than 24 lakh families across Punjab and provide financial relief worth Rs 518 crore. Of the principal amount, 25 per cent can be paid immediately and the remaining 75 per cent can be cleared in two easy instalments over the course of one year, he said. Mann further announced that electricity connections that had been disconnected due to pending bills would also be restored under the scheme.

Source: ANI via Devdiscourse

45 days to apply, Rs 2,516 crore in outstanding dues

The Tribune reported the same announcement with additional detail: consumers will get 45 days from the date of notification to avail the benefits of the scheme, and the outstanding dues of over 24 lakh consumers amount to Rs 2,516 crore. The Rs 518 crore figure announced by the Chief Minister is the value of the penalties and interest being waived, while the principal remains payable under the instalment structure.

Source: The Tribune via Inshorts

"A major relief for domestic electricity consumers in Punjab... Today, we have announced an 'OTS (One-Time Settlement) Scheme' for pending electricity bills," Mann said, as quoted by ANI.

Announced ahead of the 2027 Assembly elections

The announcement comes as Punjab moves towards the 2027 Assembly elections, with the Aam Aadmi Party government presenting the waiver as relief for households carrying old power dues. ANI's report noted the press conference was held ahead of the 2027 Punjab Assembly elections. No opposition reaction specific to the OTS announcement had been reported at the time of publishing.

What happens next: the scheme takes practical shape once the formal notification is issued, starting the 45-day window The Tribune reported for consumers to apply. Defaulters who enrol will pay 25 per cent of the principal up front, clear the rest in two instalments over a year, and — where connections were cut over unpaid bills — have their supply restored under the scheme, according to the Chief Minister's announcement.