PATIALA: Even as the state government is still looking for ways to export its surplus power to Pakistan and Nepal, the government's focus has again shifted to the long-term power purchase agreements (
PPAs) signed with the independent power producers (
IPPs) as Punjab stands to shell out Rs 65000 crore 'extra' over the period of 25 years, which is now being termed - the cost of making Punjab power surplus.
As per the PPA signed with the IPPs, the Talwandi Sabo Thermal plant is charging a fixed cost of Rs. 1.23 per unit of its installed capacity. The government is paying Rs. 2.20 as fixed charges to
Goindwal Sahib Thermal Plant while Rs. 1.43 per unit of installed capacity is being paid to Rajpura Thermal Power Plant. When compared with a lower fixed cost of Rs 0.16 being charged by Sasan Thermal Power Plant and other IPPs where the state has a fixed share, the state stands to pay Rs 65000 crore extra over a period of 25 years for which the PPAs have been signed.
As of today, the state pays fixed charges of around Rs 3000 crore to the IPPs. These charges are paid even when there is no demand for power in the state. The power demand during most of the year floats around 6000 to 8000 MW, other than the paddy season when this demand rises above 11500 MW. During other time of the year, the state has a surplus power of 1,500-3,000 MW on which the PSPCL pay the fixed charges and suffers losses.
As for the year 2017-18 the Punjab State Power Corporation Limited (PSPCL) is spending a sum of Rs 17988.67 crore on buying power from various sources including the three private power plants within the state, while the expenditure on generating power is Rs 4508.44 crore.
Expressing concerns over the huge expenditure that the state would be bearing over the 25-years, Punjab Power Minister
Rana Gurjit Singh said "The government is legally bound to honour the PPAs, but we have initiated talks with the management of private power projects to find out ways by which the overall high expenditure on buying power can be curtailed", he said.
Chairman-cum-Managing Director of the Punjab State Power Corporation Limited (PSPCL) A Venu Prasad said the power generated at plants set up in the state costs more due to coal transportation charges that push up the per unit cost of electricity. "Coal for thermal plants is ferried from a distance of over 1600 kms. Thus the cost of power goes up in Punjab", the CMD said.
However, PSPCL
Director Finance S C Arora said the corporation has to bear the cost of maintaining the state-owned thermal units which are also high as the PSPCL pays for the employees posted at these plants even when there is no generation. But in case of IPPs, the fixed charges are paid only if their generators are operational. In case of a breakdown or lapse in power generation, no fixed charges are paid to the private power producers. "This turn into a saving for the PSPCL", he said.
However, Rana Gurjeet Singh said when compared to the fixed cost being charged by other private power producers, Rs 65000 crore extra that is to be paid was a huge figure and the state needed rework how to bring down this cost. He said it was a massive challenge but the government would be doing its best to protect the financial interests of the state.
