Punjab Thermal plants remain shut, but continue to bleed power corporation

Tribune News Service

Patiala, January 20

In view of low demand for power in the ongoing winter season, the Punjab State Power Corporation Limited (PSPCL) has to keep all units of its thermal power plants shut and instead buy power to meet the demand.

At present, power demand hovers between 5,500 MW and 6,000 MW, while the average demand during the night is 3,000 MW. “All four units of Lehra Mohabbat thermal plant and Ropar, and both units of Goindwal and one unit of Talwandi Sabo power plant are shut. At present, two units of Rajpura thermal plant and two units of Talwandi Sabo plant are being run and that too on reduced load,” says Baldev Singh Sran, CMD, PSPCL.

The PSPCL is relying on private plants to meet the reduced demand by paying fixed charges.

While power from private players costs around Rs3.14 to Rs3.66 per unit, the production cost at state-owned plants is over Rs3.80. Power rates are already low in the national market owing to less demand across the country, thus Punjab has to keep its units shut.

“The average cost that we can get by selling our power in the market will not be over Rs3.10, while the production cost is much higher. We are buying power at Rs3.31 per unit from the exchange,” said Sran.

Despite demand from within the Congress to review the power purchase agreements to curb “undue profits” being raked in by private parties, nothing concrete has been done so far.

The recent decision of the Supreme Court to pay coal washing charges of Rs2,800 crore to Talwandi Sabo and Rajpura thermal plants has come as a rude shock for the consumers, who will have to bear the additional burden. The annual additional cost of washing charges for private plants is Rs275 crore for Talwandi Sabo and Rs225 crore for Rajpura thermal plant.

In case the committed power is not purchased, the PSPCL is bound to pay fixed charges of Rs500.85 crore and Rs1,712.43 crore to Rajpura and Talwandi Sabo thermal plants, respectively.

For Goindwal Sahib plant, the fixed cost has been projected by the PSPCL at Rs620.63 crore. A few years ago, the PSPCL wanted to dedicate a private thermal plant if someone was willing to buy power round the clock from Punjab, but it could not find a buyer.