Revisit power purchase agreements: Engineers to Punjab Government

Tribune News Service

Patiala, May 12

The PSEB Engineers’ Association (PSEBEA) has made suggestions to the state government to improve the financial health of Punjab State Power Corporation Limited (PSPCL) and thus save Rs 4,000 crore per year. A five-member delegation led by association president Jasbir Dhiman and general secretary Ajaypal Singh Atwal met Power Minister Harbhajan Singh ETO and explained to him the short-term and long-term measures needed to streamline the PSPCL working.

“The power purchase agreements (PPAs) with the private generators should be reviewed and modified to save unnecessary fixed and variable charges,” the association told the minister.

“Responsibility should be fixed for forcing higher capacity charges on Punjab, causing a loss of Rs 28,672 crore over the 25-year term of PPAs. This serious lapse was not covered in the white paper issued in 2021,” they said.

The association claimed in future, plants should be set up under the state sector to avoid any loss. “A 250 MW solar plant should be installed by the PSPCL in the vacant space at the Bathinda thermal plant,” it said. They demanded that coal from Pachhwara mine should be used to produce cheap power at Lehra Mohabbat and Ropar thermal plants.

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