Chandigarh/Patiala: Punjab Chief Minister Charanjit Singh Channi on Saturday approved the proposal of Punjab State Power Corporation Limited (PSPCL) to terminate the power purchase agreement of GVK Goindwal Sahib. After this PSPCL has issued termination notice to the company. However, PSPCL is on a PPA with the other two Independent Power Producers (IPPs) in Punjab – NPL Rajpura and Talwandi Sabo Power Limited (TSPL).
The move assumes political significance as canceling PPAs with private players was included in the 18-point agenda of the AICC and the Channi-led government has promised to take steps to reduce power tariffs.
In July, the then CM Amarinder Singh had directed the PSPCL to cancel its PPA with TSPL, Mansa, as it “failed miserably” during the current paddy season. He said the PPA was “heavily biased in favor of the company.”
PPA’s decision to protect the interests of consumers: CM Channi
Meanwhile, an early default notice was served by PSPCL on Saturday to GVK for cancellation of PPA due to high power cost and lowest in order of merit, purchase of energy from GVK which is only in the range of 25-30%. restricted within. As a result of higher tariff of around Rs 7.52 per unit for the previous year during most of the year.
Channi said that this step has been taken to protect the interests of the consumers by reducing the burden of costly electricity.
An official spokesperson said that the basic premise of GVK entering into PPA with PSPCL was to provide affordable power to PSPCL. GVK was generating power by arranging coal from Coal India Limited under Shakti Policy. He said that as per the PPA, GVK was required to arrange a captive coal mine, but it failed to do so even after more than 5 years of synergy with the grid. The capacity charges are being decided by the Punjab State Electricity Regulatory Commission (PSERC) on the basis of a capital cost of about Rs 3,058 crore, which is roughly equivalent to Rs 1.61 per unit fixed cost. The spokesperson mentioned that GVK had moved the Appellate Tribunal for Power (APTEL) to claim higher fixed cost of Rs 2.50 per unit based on claims of capital cost of around Rs 4,400 crore, which is pending.
Further, GVK had defaulted against loans taken from various lenders for non-payment of dues on time. The spokesperson claimed that the lenders have approached the National Company Law Tribunal (NCLT) for a resolution plan for GVK, which is pending before the tribunal. It was in August this year when the state government, on the recommendation of a three-member committee of PSPCL, decided to serve default notices to the other two IPPs in the state.
Official spokespersons of both the plants confirmed that they have not received any notice in this regard. The committee had then submitted to the Punjab Government that about 5737 MUs of energy have been surrendered by PSPCL to GVK for such power from the financial year 2018-19 to 2020-21, while payment of fixed charges of about Rs.1017 crores has been done. Committed claimed that the cost of power surrendered from this plant during 2018-19, 2019-20 and 2020-21 was Rs 142 crore, Rs 610 crore and Rs 265 crore respectively, while the average per unit charge (fixed + variable) was Rs. ) of GVK) stood at Rs 6.63, Rs 10.02 and Rs 7.53, respectively. Sources revealed that the Punjab CM had recently held meetings with senior officials of the power sector and PSPCL to discuss the PPA with IPP and is planning to renegotiate the power agreement with NPL, Whereas other IPPs may be given notice for the revised terms. Conditions.
While Chairman cum Managing Director PSPCL A.Venu Prasad could not be contacted for comments, Generation Paramjit Singh, Director, PSPCL, expressed his ignorance about any action plant for re-negotiation and notice and said, “I am not aware of this. I am unaware whether any notice was being sent. in this regard”
Sources revealed that the white paper on PPAs is almost ready and will be presented to the government along with IPPs in Punjab with the responsibilities and accountability fixed on those responsible for costly PPAs.
The move assumes political significance as canceling PPAs with private players was included in the 18-point agenda of the AICC and the Channi-led government has promised to take steps to reduce power tariffs.
In July, the then CM Amarinder Singh had directed the PSPCL to cancel its PPA with TSPL, Mansa, as it “failed miserably” during the current paddy season. He said the PPA was “heavily biased in favor of the company.”
PPA’s decision to protect the interests of consumers: CM Channi
Meanwhile, an early default notice was served by PSPCL on Saturday to GVK for cancellation of PPA due to high power cost and lowest in order of merit, purchase of energy from GVK which is only in the range of 25-30%. restricted within. As a result of higher tariff of around Rs 7.52 per unit for the previous year during most of the year.
Channi said that this step has been taken to protect the interests of the consumers by reducing the burden of costly electricity.
An official spokesperson said that the basic premise of GVK entering into PPA with PSPCL was to provide affordable power to PSPCL. GVK was generating power by arranging coal from Coal India Limited under Shakti Policy. He said that as per the PPA, GVK was required to arrange a captive coal mine, but it failed to do so even after more than 5 years of synergy with the grid. The capacity charges are being decided by the Punjab State Electricity Regulatory Commission (PSERC) on the basis of a capital cost of about Rs 3,058 crore, which is roughly equivalent to Rs 1.61 per unit fixed cost. The spokesperson mentioned that GVK had moved the Appellate Tribunal for Power (APTEL) to claim higher fixed cost of Rs 2.50 per unit based on claims of capital cost of around Rs 4,400 crore, which is pending.
Further, GVK had defaulted against loans taken from various lenders for non-payment of dues on time. The spokesperson claimed that the lenders have approached the National Company Law Tribunal (NCLT) for a resolution plan for GVK, which is pending before the tribunal. It was in August this year when the state government, on the recommendation of a three-member committee of PSPCL, decided to serve default notices to the other two IPPs in the state.
Official spokespersons of both the plants confirmed that they have not received any notice in this regard. The committee had then submitted to the Punjab Government that about 5737 MUs of energy have been surrendered by PSPCL to GVK for such power from the financial year 2018-19 to 2020-21, while payment of fixed charges of about Rs.1017 crores has been done. Committed claimed that the cost of power surrendered from this plant during 2018-19, 2019-20 and 2020-21 was Rs 142 crore, Rs 610 crore and Rs 265 crore respectively, while the average per unit charge (fixed + variable) was Rs. ) of GVK) stood at Rs 6.63, Rs 10.02 and Rs 7.53, respectively. Sources revealed that the Punjab CM had recently held meetings with senior officials of the power sector and PSPCL to discuss the PPA with IPP and is planning to renegotiate the power agreement with NPL, Whereas other IPPs may be given notice for the revised terms. Conditions.
While Chairman cum Managing Director PSPCL A.Venu Prasad could not be contacted for comments, Generation Paramjit Singh, Director, PSPCL, expressed his ignorance about any action plant for re-negotiation and notice and said, “I am not aware of this. I am unaware whether any notice was being sent. in this regard”
Sources revealed that the white paper on PPAs is almost ready and will be presented to the government along with IPPs in Punjab with the responsibilities and accountability fixed on those responsible for costly PPAs.
.