The Punjab State Power Corporation Limited (PSPCL) has set in motion the process to ‘cancel’ power purchase agreements (PPAs) with GVK Group’s private thermal plant at Goindwal Sahib in the state and the one run by Damodar Valley Corporation at Purulia district in West Bengal by serving them with “repudiation notices”.
The corporation will also issue notices to other Punjab-based private power plants, but not for scrapping the PPAs, it is learnt.
The government has decided to “repudiate” the PPA with the Goindwal Sahib thermal plant as its per unit rate is as high as ₹10 even as power is available at ₹3 to ₹3.5 per unit from the national grid. Similar reason was cited in case of the Damodar Valley Corporation’s Raghunathpur plant in West Bengal’s Purulia district that had entered a PPA with the PSPCL.
However, the government decided to serve a default notice on the Talwandi Sabo plant which it said was functional for 12 months in the last three years, which is less than the minimum requirement of 65%.
For the Rajpura thermal plant, the government has decided to serve a notice for revisiting the PPA, saying the availability of its units was not guaranteed during the paddy sowing season.
{{/usCountry}}For the Rajpura thermal plant, the government has decided to serve a notice for revisiting the PPA, saying the availability of its units was not guaranteed during the paddy sowing season.
{{/usCountry}}According to the notice, the plant will be asked to amend the PPA to ensure its 95% availability during the paddy season besides reducing the electricity rates as bank interest rates and corporate taxes have come down in the recent past.
“With serving of notices, the government has acknowledged that the PPAs were faulty and against the interests of the state and its people. Now, it should punish the erring officials who entered into these agreements. A white paper should be brought in the next Vidhan Sabha session as promised by the chief minister,” said a senior corporation engineer.
Except the Damodar Valley and GVK notices, no other communication is serious, he added.
The decision to serve notices on the private power plants was taken by chief minister Amarinder Singh whom the PSPCL has forwarded a proposal in this regard. The CM had asked the corporation to scrap or revise the PPAs that are adversely affecting the consumers.
PSPCL chairman-cum-managing director (CMD) A Venu Prasad said he has forwarded the file to the director (generation) to act as per the decision taken by the government. “I will comment once the process is completed,” he added.