Arun Verma, director distribution, Punjab State Power Corporation Limited, on Monday signed two power purchase agreements with Pritam Singh Gill, managing director, Gill Power Generation Company Pvt. Ltd.
The company will be supplying 2.5MW from its mini-hydel project at Dhariwal, which will be set up at UBDC/main branch upper at cost of Rs.22.5 crore and another 2MW from its mini hydel project at Kunjar to be set up at UBDC/main branch upper at a cost of Rs. 18 crore.
Verma informed that both the projects will start power generation by 2014 and power will be purchased at the rates fixed by PSERC. He further said the company was already successfully running a power plant at the same canal and supplying 2.7MW for the past six years. He added that these were long-term power purchase agreements for a period of 35 years and would boost generation of environmental-friendly energy.