Power Minister RK Singh has warned of a debt trap for states like Punjab using borrowed money to provide free electricity, saying such populist schemes are fine only if a state has finances. Electricity, like any other commodity, involves the cost of generating it, and if a state is to provide it for free to a section of consumers, it also needs to have finances to pay the generating utility. If the generating utility isn't paid, electricity will not be produced in the first place. In an interview with PTI, Singh said he has been telling states that electricity is not free. "If any state wants to give free power to any category of people, they can go ahead and do so, but you have to pay for it". However, states with already high debt are resorting to such populist measures, forcing them to borrow more to pay generating utilities, resulting in a debt trap. "You should not be bringing your state to a situation where it falls into a debt trap. Many of the states are close to debt trap