PSPCL is going to take historical decision-scrapping PPA’s with power companies
Kanwar Inder Singh/ royalpatiala.in
Punjab state power corporation limited (PSPCL) is going to take a major and historical step in its history-going to scrap the three PPAs done with the Damodar Valley Corporation (DVC), Kolkata; Pragati Power Corporation Limited ,New Delhi and Meja Urja Nigam Power Private Limited, Allahabad (UP) after the Punjab State Electricity Regulatory Commission (PSERC) dismissed its review petition that the PSPCL had filed against the regulator denying approval to Power Purchase Agreements (PPAs), done with them. The same is confirmed by the CMD Punjab state power corporation limited CMD A Venu Prasad.
Prasad further added that the powercom is going to give the notice to these companies, after the regulatory body gave this verdict. He also confirmed that the powercom is not going to appellate tribunal or any court against the regulatory body verdict.
“PSPCL’s proposal of procurement of 885.10 MW on long-term basis from projects Meja, Pragati-III and DVC’s Raghunathpur, Durgapur & Bokaro Stations at the given per unit price of ₹5.53; ₹4.82; ₹4.61; ₹4.44 and ₹4.39 respectively, would not be an economically viable proposition, particularly so, when much cheaper power is available in the market. As such, it would not be in the interest of consumers of Punjab, if procurement from these stations at the indicated rates is approved. The commission does not think it prudent to permit the same at the indicated prices,” read orders of the commission.
In Damodar Valley Corporation case, PSERC said “ the DVC Generating Station is more than Rs 3/ kWh, is incorrect . Therefore, there is no cause to review it.
On Pragati Power Corporation Limited review petition order, PSERC said “ the commission stands by its earlier orders and finds no cause to review it.”
Punjab state electricity regulatory commission (PSERC) has said “ the commission has given PSPCL the liberty to renegotiate viable rates for the power plants including Meja Urja Nigam Power Private Limited (MUNPL) and seek the commission approval.”
“Keeping in view the above facts the Commission finds that the review petition is without any merit and is accordingly dismissed.”
September 9,2021
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