PSPCL ₹100-crore power upgrade gains momentum in city
After months of anticipation, Punjab State Power Corporation Limited (PSPCL)’s ambitious ₹100-crore plan to reduce power outages in Ludhiana is finally moving from promise to execution.
The utility has begun securing land and initiating groundwork for new 66kV substations across the city, even as questions arise over delays, cost variations, and transparency in land acquisition.
Under PSPCL’s Outage Reduction Plan (ORP), Ludhiana was originally slated to receive eight substations, a number that has now increased to nine with the addition of a new site in Sector 32. The expansion reflects the growing electricity demand in the city, where overloaded substations and frequent feeder faults have long disrupted supply, especially during peak consumption periods.
Significant progress has been reported at Dana Mandi in Sunder Nagar, where PSPCL acquired 2,609.635 square yards of land at ₹27,000 per square yard. The civil works tender for this site has already been floated, and construction is expected to commence within a week.
Officials say the substation will help ease load pressure on Norewal, GT Road, and Bahadurke—areas that have historically struggled with overburdened infrastructure.
{{/usCountry}}Officials say the substation will help ease load pressure on Norewal, GT Road, and Bahadurke—areas that have historically struggled with overburdened infrastructure.
{{/usCountry}}Another critical site has been finalised in Sector 32 through GLADA, with 3,500 square yards secured at ₹25,000 per square yard. While land acquisition here is complete, groundwork will begin only after procedural clearances are obtained.
Additionally, a panchayat in Hawaas village has provided a substation site free of cost, demonstrating a mix of acquisition strategies aimed at fast-tracking the project.
However, documents accessed by this newspaper highlight significant gaps between procurement costs and prevailing market rates in several locations.
In some cases, land has been acquired at nearly half—or even one-third—of its market value. For instance, parcels purchased at ₹25,000– ₹35,000 per square yard correspond to market rates of ₹55,000– ₹1 lakh per square yard. Officials attribute these discrepancies to inter-departmental coordination and negotiated transfers, but the variations have sparked questions about uniformity and transparency in urban land valuation.
The project also employs a mixed development model, with some substations built on purchased land and others on leased parcels with annual escalation clauses of up to 10 percent, potentially impacting long-term financial planning. Multiple government agencies, including local bodies, GLADA, PSIEC, rural development authorities, and the mandi board are involved, underscoring the administrative complexity of aggregating land for power infrastructure.
Jagdev Singh Hans, chief engineer, Central Zone, PSPCL, said, “The initiative is moving forward under policy-level guidance. Once the substations are completed, the load on existing infrastructure will be significantly reduced, bringing relief to residents and industrial units.”
Despite this progress, the time lag between announcement and execution remains a concern. With summer demand approaching, intermittent outages continue to affect households and businesses, even as the project begins to take shape on the ground.