Directed to revisit power pacts, PSPCL had earlier justified PPAs with pvt firms

PATIALA: Punjab State Power Corporation Limited (PSPCL) seems to be in a dilemma over power purchase agreements (PPAs) with private plants as it had earlier this year defended the pacts. This holds significance as CM Amarinder Singh had asked the corporation to revise/ cancel pacts with independent power producers, signed during the SAD-BJP regime.

PSPCL chairman-cum-managing director A Venu Parsad had on March 17, 2021, justified that independent power plants are needed for the state. He made the observation on a letter by principal secretary, finance, KAP Sihna, who had flagged issues of fixed costs being paid to private plants, power theft and higher tariff from renewable energy.

In its reply, the PSPCL said private thermal plants are contributing 31% of the electricity to the state and without these, the power demand of Punjab could not be met.

“With the addition of 3,920MW from private plants, the PSPCL has been able to meet the rising demand. Moreover, building and strengthening the transmission system is a time consuming process and requires consistent efforts from state transmission utilities in coordination with the Northern Grid. Therefore, in the present scenario, termination of PPAs would lead to severe power crisis in the state, said an official.

The government has said that the PPAs are lopsided, tilted towards independent power plants and against consumers. If such admissions are made, the government should punish erring officials who signed it, he said. All documents of the PSPCL justifying independent power producers are in the public domain. How can the corporation do a U-turn now? It’s a Catch-22 situation as officials who asked to defend the PPAs are now asking to find ways to scrap it,” said another official, who has been assigned to be part of team to study the PPAs.

PSPCL CMD A Venu Prasad said his early reply holds no significance as the Talwandi Sabo Power Plant has failed to deliver in the peak season, thus circumstances have changed. The PSPCL will examine every PPA and find a solution. Initial report will be submitted to the government by next week, he added.