Goindwal Sahib plant hits PSPCL roadblock

  • Gurpreet Singh Nibber, HindustanTimes
  • Updated: Feb 01, 2016 09:48 IST

Finally, when GVK Power is making all efforts to commission its delayed 540-megawatt thermal electricity project at Goindwal Sahib, Punjab State Power Corporation Limited (PSPCL) doesn’t seem keen on drawing power from it.

Last week, the PSPCL wrote to GVK that “the plant can’t be commissioned, as it doesn’t fulfil the conditions agreed in the power-purchase agreement signed in 2009”. The project is already much behind schedule after two years ago the Centre cancelled its licence for the coal block in Tokisud, Jharkhand. GVK has made interim arrangements for coal supply from South African mines to make sure there’s enough fuel to run the plant. GVK has also secured unused coal from Coal India Limited for firing up the Goindwal plant.

“The issue is very simple — they have no permanent arrangements for coal, so how can they run their thermal-energy plant. Also, they are not meeting the conditions of the power purchase agreement (PPA) signed with us,” PSPCL chairman and managing director KD Chaudhri told HT, adding that the company was free to approach Punjab State Electricity Regulatory Commission (PSERC) if it had any grievances.

Upset over the PSPCL reaction, the company’s top officials say they are trying to save the project from turning into a nonperforming asset but not getting any support from the Punjab government and the PSPCL. “We want to run it even though we are have to procure costlier imported fuel. The PSPCL should rather encourage us instead of throwing a spanner in the works,” a senior company executive told HT.

The company plans to move the PSERC to seek directions to the PSPCL to allow the plant’s commissioning. Representatives of its promoter company, GVK Reddy, are expected to meet chief minister Parkash Singh Badal.

The company clams tie-ups with the transmission companies in the region and the load dispatch centre for supply of power into the system but the PSPCL is not agreeing to take it.

Under the PPA signed with GVK in 2009, PSPCL was to purchase power from GVK for 25 years and the plant was to be commissioned in May 2014.

Despite opposition from the PSPCL, GVK is expected to commission the first 270-megawatt unit by Monday, and it has engaged an independent engineer to oversee the commissioning.

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