The onset of the year brought positive developments for the Punjab State Power Corporation Limited (PSPCL) as they obtained approval from the National Company Law Tribunal (NCLT) in Hyderabad to acquire a private power facility located in Goindwal Sahib, Tarn Taran district.
The thermal plant, sprawling over 1,100 acres of land and producing 540 megawatts (MW) of power, was acquired by PSPCL for a final bid of approximately Rs 1,080 crore. This move came amid corporate insolvency proceedings against its previous owner, GVK Power, and attracted interest from a total of 12 companies, including PSPCL.
Although the NCLT has given the final clearance, PSPCL awaits approvals from the Competition Commission of India and the Punjab State Electricity Regulatory Commission (PSERC) before taking official control of the thermal power plant. However, PSPCL has already provided a bank guarantee to the NCLT regarding the payment for the plant, as confirmed by sources.
Experts from PSPCL anticipate that after addressing all procedural aspects, the cost of this thermal plant would amount to approximately Rs 2 crore per MW, significantly lower than the prevailing rates in private companies.
A senior PSPCL official, speaking anonymously, highlighted the significance of this acquisition as a first-of-its-kind effort, especially during an era heavily inclined towards privatization in the power sector.
The foundation stone for the GVK thermal plant was laid in October 2008 by the then chief minister Parkash Singh Badal. The plant comprises two units, each capable of generating 270 MW of thermal power. The first unit commenced operations on April 1, 2016, during the SAD-BJP rule, followed by the second unit on April 14, 2016.
Presently, Punjab boasts a total thermal power generation capacity of 5,680 MW, with 1,760 MW generated from government-owned power plants, and the remaining 3,920 MW from independent power plants.
Notably, Punjab houses two government-owned power plants – the Guru Hargobind Thermal Plant (GHTP) Lehra Mohabbat in Bathinda, generating 920 MW, and the Guru Gobind Singh Super Critical Thermal Plant (GGSSTP) in Ropar, with a capacity of 840 MW.
Independent plants like the Rajpura Thermal Power Plant (RJTP) with a capacity of 1400 MW commissioned in 2014, and the Talwandi Sabo Power Limited (TSPL) with a capacity of 1980 MW commissioned in 2013, contribute to the state’s power generation.
However, certain governmental decisions impacted power generation in Punjab. The government-owned Guru Nanak Dev Thermal Plant in Bathinda, generating 440 MW, was closed down by the previous Congress government on January 1, 2018. Additionally, two units of GGSSTP, Ropar, with a generation capacity of 420 MW, were also retired on the same day.
A senior PSPCL official, speaking to TDG, highlighted the lack of capacity addition in power generation since 2016 and the reduction by 860 MW in 2018 due to these closures. Acquiring the GVK plant is viewed as an opportunity for PSPCL to mitigate expenses, resolve litigation with GVK, and potentially create more employment opportunities.
