GVK acquisition- golden opportunity for state govt to have cost effective power generation for the people of Punjab-PSEBEA
Kanwar Inder Singh/ royalpatiala.in News/ June 7,2023
PSEB Engineers’ Association welcomes the decision of the State Government to form a Sub Cabinet Committee to acquire GVK Thermal Plant, Goindwal Sahib.PSEB Engineers Association in a letter to the Chief Minister has supported the state government’s decision.
“PSEB Engineers’ Association during the last 20 years or so, has been forewarning regarding the adverse effects of blatant privatisation of the Power sector including Generation. To ensure the right mix and competition of state and private sector in power generation and to provide reliable, quality and cheap power to the people of Punjab, Association gave its professional advice to the then State Governments to develop power plants in the state sector, instead of offering the same to the private sector on a platter. However, the state governments of the time, in their own wisdom, overlooked the professional advice, the consequences of which the state has been bearing in the form of payment of higher energy charges for units used, fixed charges despite not utilising power during lean season, increased litigations, non recovery of liquidated damages from private players, power insecurity for the state and blatant exploitation of PPAs by the private players’ said Ajay Pal Singh Atwal. General secretary PSEBEA.
Jasvir Singh Dhiman, president PSEBEA said “it is noteworthy that these private players lack the necessary experience to successfully run these thermal plants. Frequent breakdowns, faults, suboptimal generation have been a norm with these inexperienced players. A termination Notice was issued to GVK Thermal Plant, Goindwal Sahib on 26.1.2022 following Preliminary Default Notice dated 29.10.2021, though subsequently an interim stay on the termination notice was granted but this notice exposed the inability of the private player to operate the thermal plant. Now this particular private player has gone under insolvency.”
PSEBEA spokesperson added “acquiring this plant has considerable potential to ensure reliable and cost effective power generation for the people of Punjab provided the interests of the people of Punjab are kept above petty private interests. Supply of coal for this plant has been perennially short and coal used is costly. With acquisition of the plant under the state sector, Punjab will also save considerable cost by utilising coal from our own Pachwara Coal mine as currently this plant has no coal linkage thereby reducing cost per unit of electricity for consumers. “
Presently, there are ongoing litigations with implications of thousands of crores which can be avoided if the plant is acquired by PSPCL otherwise any other private party acquiring this plant shall continue to bleed the state exchequer and people of Punjab.
As per available information the PLF of this plant has lots of scope for improvement, as units with similar make and technology under the state sector i.e. GHTP Lehra Mohabbat, despite being established in 1998, has historically performed exceptionally well.
“PSPCL shall also have better control in management of supply of power. The PPA which is highly skewed in favour of the private player and its acquisition by PSPCL would mitigate future potential cost increase threats and unwarranted litigation and also help in fulfilling the promise made to the people of the state to scrap the PPA.
Surplus land of the project can be utilised in public interest. Under the state sector more employment opportunities will be available for Punjab youth” added PSEBEA authorities.
GVK acquisition- golden opportunity for state govt to have cost effective power generation for the people of Punjab-PSEBEA. “We fervently hope that this time the above views of this professional body shall be considered and all out efforts would be made for acquiring the 2×270 MW GVK thermal under State Sector at reasonable price; keeping in view the interest of power consumers of Punjab” said Atwal.
