The Punjab government has decided to award the Rajpura Thermal Plant project, which is likely to generate 1320 MW power once operational, to Larsen & Toubro Limited (L&T), after the newl-engaged company decided to sell the electricity 41 paise per unit cheaper than quoted by the previous bidder.
The L&T would involved in the construction and generating power and finally sell it to Punjab State Electricity Board.
Earlier the Lanco Infratech, the sole bidder, had proposed to sell the electricity to the state government at Rs. 3.30 per unit. It was after the government found the rate too high that it scouted for other bidder, L&T which quoted Rs. 2.89 per unit.
The Punjab government has asked the L& T to sign the Power Purchase Agreement (PPA) with the Punjab State Electricity Board (PSEB) by January 19 before it applied for the scrutiny and approval of the Punjab State Electricity Regulatory Commission (PSERC).
Experts point out that with every single paise variation would cost the state at least Rs. 10 crore every year hence may help the state to save at least Rs. 410 crore in the entire life span of the plant.
The PSERC had cancelled the PPA signed by the Lanco Infratech after it found that the rates quoted by the single bidder were too high. The Lanco had initially quoted Rs. 3.38 per unit. However following negotiations with the PSEB it decided to bring it down to Rs. 3.30 per unit.
“ Even at Rs. 3.30 we felt the Lanco was charging too much per unit compared to the other companies selling the power at the state or the national level. Thereafter looking at all the aspects we decided to reject the PPA same”, said a senior PSERC official.
It is also pertinent to mention that the rate quoted by Sterlite involved in the construction of Talwandi Sabo Thermal Plant project, likely to generate 2000 MWs of power, was Rs. 2.86 per unit which the PSERC found competitive enough.