Appellate tribunal stays Punjab’s PPA termination notices to four power plants

The PSERC had added that the PSPCL should buy power at not more than ₹3 per unit, including fixed and variable cost; the cost from these four plants is much higher

Patiala The Appellate Tribunal for Electricity (APTEL) has stayed the Power Purchase Agreement (PPA) termination notices that the Punjab State Power Corporation Limited (PSPCL) had served to four private power generating plants with effect from October 31. The notice were served to Damodar Valley Corporation and its three entities.

The Appellate Tribunal stayed the proceedings of scrapping the PPA notice from Punjab to thermal power plants in four different appeals. (HT FILE )

The plants that had been served notices were Damodar Valley Corporation’s Durgapur (200MW share), Raghunathpur (300MW share), Bokaro (200MW share) and Meja Urja Power Project (85MW share). The PSPCL had taken this decision after the Punjab State Electricity Regulatory Commission (PSERC) gave a ruling that power from the generating stations of Damodar Valley Corporation (DVC), Kolkata; Pragati Power Corporation Limited and Meja Urja Nigam Power Private Limited, aggregating to 885MW, was costly.

The APTEL, however, stayed the proceedings of scrapping the PPA in four different appeals. “Prima facie, we have serious doubts as to the invocation of the Regulation 13 of 2012 Regulations, vis-a-vis, long-term PPAs which have been in position since 2006. In the above facts and circumstances, we do find a prima facie case for interim protection to be afforded to the appellant, balance of convenience lying in its favour, the non-grant of such relief likely to result in irreparable loss. In the facts and circumstances, we stay operation of the Orders of the State Commission in so far as it results in the PPA of the appellant with PSPCL in-operational. For clarity, we add that PSPCL will continue to be obliged to procure electricity from the appellant in terms of the PPA till further orders,” the stay orders read.

Pertinently, the PSPCL’s proposal of procurement of 885MW of power on long-term basis from Meja, Pragati-III and DVC’s Raghunathpur, Durgapur and Bokaro stations at ₹5.53, ₹4.82, ₹4.61, ₹4.44 and ₹4.39 per unit, respectively, was rejected by the PSERC. The ruling said that it would not be an economically viable proposition, particularly so, when much cheaper power is available in the market. The PSERC had added that the PSPCL should buy power at not more than ₹3 per unit, including fixed and variable cost.