To scrap PPAs, Punjab Government to table Bill

Ruchika M Khanna

Tribune News Service

Chandigarh, October 29

The Punjab Government is all set to scrap or renegotiate the controversial Power Purchase Agreements (PPAs) with three independent power producers generating thermal power and some others generating solar power. A Bill, facilitating the same, is now in the works.

Official sources in the Punjab Government have told The Tribune that following marathon meetings between two ministers and Chief Minister Charanjit Singh Channi earlier this week with officials in the Power Department and the state’s Legal Department, it has been decided to bring in a Bill in the Assembly for the purpose. It is learnt that efforts are on to bring in the Bill in the upcoming one-day special Assembly session on November 8.

Those privy to the meetings have told The Tribune the PPAs have also been legally examined by some top experts in the country. It is based on their advice that The Termination and Renegotiation of PPAs Bill is being proposed to be brought in the Assembly. A meeting on the issue was held again today.

Sources say it is proposed to terminate the PPA with the GvK for the 540 MW Goindwal Sahib Power Plant, impose a fine on the 1,980 MW Talwandi Sabo Power Plant located at Mansa for failing to generate power to its optimum capacity during peak demand season this year; and renegotiate the rates of tariff (mainly fixed tariff) with the management of 1,400 MW Nabha Power Plant at Rajpura. It may be noted that as on date, the three power plants supply an average of 3,000 MW power to the state, as against the state’s own thermal power generation of average 1,100 MW.

Other than this, the government is also looking at scrapping the PPAs with some solar power plants, which were sanctioned during the tenure of the previous Akali-BJP government. The rate at which the government is buying power from the solar power producers (through as many as 95 PPAs) is between Rs 2.67 and Rs 10.62 per unit, though in some cases, a tariff of as high as Rs 17 per unit is being paid.

The previous political dispensation headed by Capt Amarinder Singh had initially proposed to bring down the tariff paid to the solar power producers by Re 1 per unit. However, nothing was done on this front before the change in government.

Marathon meetings held by CM

Sources said following marathon meetings between two ministers and CM Charanjit Singh Channi with officials in the Power and Legal Departments, it has been decided to bring in a Bill in the Assembly for the purpose. It is learnt that efforts are on to bring in the Bill in the upcoming one-day special Assembly session on November 8.