Cash-strapped PSPCL to buy cheap power from grid

PATIALA: In a major relief, the Punjab State Power Corporation Limited (PSPCL), which has been under financial stress due to low demand in the wake of the coronavirus-induced lockdown, will buy electricity from the grid at rates as economic as Rs 3 per unit and that too during the peak summer season.

The price is even lesser than the cost of power generated by the state-owned and private thermal plants in Punjab.

The corporation has entered a short-term agreement with the grid to purchase 1,500 megawatt (MW) electricity from June to September, particularly keeping in view the upcoming paddy season. The cost of the Talwandi Sabo Power Plant and independent power plants is around Rs 3.40 per unit against the variable cost of Rs 2.94-Rs 3.04 per unit the corporation will pay to the grid for a unit.

“Even as power demand in Punjab is likely to remain on lower side this year due to the prolonged Covid-19 crisis, the corporation’s agreement for power purchase with the grid will come handy in case of an emergency in any power station,” said a senior PSPCL official.

“Cheaper power bought through short-term tenders and power exchange will help replace costly electricity procured via long-termpowerpurchaseagreements (PPAs) and also reduce the use of imported coal by thermal plants,” he said.

PSPCL chairman-cum-managing director (CMD) Baldev Singh Sran said, “Usually, the power rates remain high during the peak summers, but this time we got a good deal. The corporation will save Rs 100 crore through the short-term agreement.”

“We have placed an order for purchasing 605 MW power from 10 June to 30 June when the demand soars due to paddy sowing. We have made arrangements to provide 8-hour power supply to farmers and round-the-clock uninterrupted power to other consumers,” he added.