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.
Addressing a press conference, Mann said the Punjab State Power Corporation Limited (PSPCL) has purchased the plant for ₹1,080 crore.
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This is the country’s cheapest purchase of any power plant, he claimed, adding that the deal stands at ₹2 crore per MW.
The project, which came up seven years ago, is left with a life of 18 years.
With the purchase of this power plant, the Punjab government will save ₹300 crore- ₹500 crore in generation cost as compared to what it was paying to the GVK Group according to the power purchase agreement (PPA) signed during the Shiromani Akali Dal-BJP government’s tenure, Mann said.
Probing PPAs is one of the poll promises of the Aam Aadmi Party government.