PPAs 'cancelled', PSPCL still buying power from plants

Aman Sood

Tribune News Service

Patiala, December 16

The state government is spending crores of rupees on its advertisement campaigns, claiming that all costly Power Purchase Agreements (PPAs) “have been cancelled to ensure cheap power” for Punjab residents. However, information gathered by The Tribune reveals that “PPAs are yet to be cancelled” and all three private thermal plants continue to receive payments and supply power to Punjab.

Promotion before action?

  • Hoardings, boards already put up across state, featuring photo of CM Charanjit Singh Channi, claiming that all agreements have been cancelled
  • But all 3 thermal plants continue to receive payment, supply power to meet load
  • Opposition says Chief Minister is trying to befool people with false claims

Sources within the government claimed that the Public Relations (PR) Department had spent crores in projecting that the state government had “cancelled all expensive PPAs”. “Hoardings, boards and poles have already been put up across the state, featuring a photo of Chief Minister Charanjit Singh Channi, claiming that all agreements have been cancelled,” they said.

However, the Punjab State Power Corporation Limited (PSPCL) continues to buy power from all three thermal plants, to meet the demand of around 7000 MW, an official claimed.

Till three days ago, Talwandi Sabo and GVK were running at half load due to their limited coal stock while one unit of the Rajpura thermal plant was under maintenance and the second was supplying at full load.

It has been a month since Channi approved PSPCL’s proposal to terminate GVK Goindwal Sahib (2×270 MW) Power Purchase Agreement after it served a preliminary default notice to the plant on October 30, for cancellation of the PPA due to high power cost and low ranking in the merit order. “This step has been taken to safeguard the interest of consumers by way of reducing the burden of costly power,” Channi had claimed after the termination notice was served.

However, GVK had challenged the termination notice and is still supplying power, shut only due to coal paucity.

“The GVK was supplying power till its coal stock exhausted a day back and is shut now till stocks arrive. The other two thermal plants, including a state owned, are supplying power,” confirmed CMD A Venu Prasad. On the issue of termination notice served to GVK, Prasad said: “They have three months for consultation”.

Former minister Bikram Majithia said the Channi government was trying to befool the people with false claims.

AAP senior leader Harpal Cheema said the government could not hide its failure in termination of contracts with private plants. While two Cabinet ministers and a MLA refused to comment on the issue, a senior Congress leader said power rates were reduced by Rs 3 already and it was a matter of time when such PPAs would be scrapped.

PPAs 'cancelled', PSPCL still buying power from plants
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