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Punjab State Power Corporation Ltd (PSPCL) withdrew a circular permitting cluster substations for non-contiguous industrial units following intervention by the Punjab State Electricity Regulatory Commission (PSERC). The PSERC issued a show-cause notice to PSPCL for alleged violations of the Electricity Act and initiated proceedings against its Chief Engineer.

The circular, approved by PSPCL's Board in December, contradicted PSERC's earlier rejection of a similar proposal in October 2025, which stated that cluster substations are only allowed for contiguous premises. The PSERC deemed the circular void and ordered its immediate withdrawal.