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Punjab buys 540MW Goindwal thermal plant for ₹1,080 crore
Addressing a press conference on Monday, Mann said Punjab State Power Corporation Limited has purchased the plant for ₹1,080 crore
Chief minister Bhagwant Mann on Monday announced that the Punjab government has bought GVK Group’s 540MW thermal plant at Goindwal Sahib in Tarn Taran district. The 540 MW thermal plant is spread over 1,100 acres of land in Goindwal Sahib in Tarn Taran.
Addressing a press conference on Monday, Mann said Punjab State Power Corporation Limited (PSPCL) has purchased the plant for ₹1,080 crore.
“For the first time, this reverse trend has started that the government has purchased any private power plant whereas in the past the state governments used to sell their assets to the favourite individuals at ‘throw away’ prices,” Mann said.
Mann claimed that the power plant is the cheapest purchase made by any state or private company as other power plants like Korba West, Jhabua Power and Lanco Amarkantak with an installed capacity of 600 MW have been purchased at ₹1804 crore, ₹1910 crore and ₹1818 crore, respectively.
He said that the 540 MW plant has been purchased at ₹2 crore per megawatt (MW) and announced that it will be named as Sri Guru Amardass Thermal Power plant after the third Sikh Guru.
The CM said that against the available capacity of 61%, the thermal plant was used only up to 34%, but now it will be run to 75-80% of its capacity augmenting the power generation in the state.
“This purchase will help in reduction in overall tariff by over ₹1 per unit and will lead to savings of ₹300-350 crore on power purchase thereby benefiting the consumers of the state,” Mann said, adding that it will also help in doubling the power generation due to availability of coal from state’s Pachhwara coal mine as plant load factor (PLF) is likely to go up to 75 to 80% against average PLF 34% so far.
Mann said that coal from Pachwara can be used only for government power plants, so with this purchase, the coal from the state government’s mine can be aptly utilised for producing power.
“With this 33% Power Purchase Agreement (PPA) i.e. one out of three with private thermals, have been terminated.
The idea of 540 (2x270) MW GVK Goindwal Sahib Thermal plant was mooted in 1992. Initially, a PPA for a 500 MW plant was signed in 2000, thereafter a MOU for a 540 MW plant was signed in 2006, followed by an amended PPA for 540 MW in 2009.
“PSPCL was in contention to purchase the plant along with 11 other contenders i.e. Jindal Power, Adani Power, Vedanta Group, Rashmi Metaliks, Sherisha Technologies, Sai Wardha Power, Megha Engineering and Infrastructures, India Coke & Power Pvt. Ltd., RKG Fund (RKG Trust), KLu Resources and Capri Global Holdings & Pvt. Ltd,” he said.
‘Will reduce the cost of power generation’
The CM said that between 2016 and 2023, the state government had purchased 1,11,65 million units of power by paying ₹7902 crore.
He said that the GVK thermal plant was paid ₹1,718 crore fixed cost adding that an average per unit of ₹7.08 per unit was paid to the power plants.
“Estimated per unit cost after acquisition with Pachwara coal will now be ₹4.50 per unit, adding that it will save ₹300-350 crore per annum which will be utilised for the welfare of people,” he said. The CM also announced to review of all the PPAs for the purchase of solar power in the state.
He said that the state government has purchased the solar power now at ₹2.54 whereas, during the earlier tenures, an exorbitant amount of even ₹15 was paid for same.
“Even Solar power PPAs were signed in a way to mint heavy money during previous regimes. All the PPAs will be investigated,” he said.
