Won’t supply power from Feb 29 if rate not hiked: Tata Power notice to Punjab - Hindustan Times
close_game
close_game

Won’t supply power from Feb 29 if rate not hiked: Tata Power notice to Punjab

Hindustan Times, Patiala | By
Feb 24, 2020 11:56 PM IST

ata power is supplying 475MW power to Punjab from its 4,000MW plant in Gujarat

Gujarat-based Mundra Ultra Mega Power Plant owned by Tata Power has given a notice to Punjab government conveying that it will stop supply from February 29 if the rate at which it buys electricity is not hiked as desired.

HT Image
HT Image

Tata power is supplying 475MW power to Punjab from its 4,000MW plant in Gujarat. As per the PPA, Punjab pays 2.91 per unit and the company had sought to revise the rate by 50 paisa per unit. The new hiked rate would have cost the state exchequer 200 crore annually.

Hindustan Times - your fastest source for breaking news! Read now.

Tata Power has stated that it is running into losses due to high cost of imported coal and will be left with no option but to shut operations from February 29 onwards. Gujarat, Maharashtra, Rajasthan and Haryana also buy power from the same plant.

Tata Power Ltd. had written to the secretary (power), Punjab, in December 2018 for amending the power purchase agreement (PPA) based on the recommendations of the high-powered committee constituted by the government of Gujarat, formed after a judgment of the Supreme Court.

In the parleys and negotiations between the two sides since, the Punjab government agreed on some revisions and relaxations, but that fell short of what the company was seeking. “We have negotiated with them, but didn’t sign any revised PPA. We can’t go as per the estimation of high powered committee of Gujarat as there was no representation of Punjab, which is the signatory of PPA,” said a PSPCL official, who dealt with the case.

In Haryana, the Congress is opposing the revision of PPA, saying that it will benefit Adani, Tata and Essar companies. Despite attempts, secretary (power), Punjab, Ravneet Kaur, could not be contacted, while power corporation CMD Baldev Singh Sran, was away to Delhi for some official work.

However, PSPCL officials in the know of the issue said they were prepared deal with the situation in case the Mundra plant stops supply.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!

Get latest Updates of All City News along with Delhi News, Bengaluru News, Mumbai News and Top Headlines from India
SHARE THIS ARTICLE ON
Share this article
  • ABOUT THE AUTHOR
    author-default-90x90

    Vishal Rambani is an assistant editor covering Punjab. A journalist with over a decade of experience, he writes on politics, crime, power sector, environment and socio-economic issues. He has several investigative stories to his credit.

SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On