Announcing the termination of Power Purchase Agreement (PPA) with the GVK-owned 540 MW thermal power plant at Goindwal Sahib, Punjab chief minister Charanjit Singh Channi said that PPAs with other two thermal plants in the state will also be reworked.

“In the session of the Vidhan Sabha on November 8, the House will hold discussions on the matter, take decision and also bring legislation,” Channi, who also holds the power portfolio, told media persons, after the Cabinet meeting.

The CM disclosed that a notice had been served to GVK for cancellation of the PPA. The PPAs with the other two supercritical thermal plants; L&T-owned 1,400 MW at Rajpura and Vedanta group’s 1,980 MW at Mansa are also under the scanner. The cancellation of these PPAs, which were signed during the tenure of SAD-BJP government, was part of the pre-poll promise made by the Congress ahead of the 2017 state polls for the exorbitant tariff it imposed.

The demand for the cancellation of these PPAs was raised during the tenure of Capt Amarinder Singh as state CM, by leaders within the party. The issue also became a rallying point for Capt’s removal.

“This costly power will be replaced with the low-cost power from solar generation. Reduction in power cost will be passed to the consumers,” said the CM, adding that GVK was supplying power at rate of Rs. 6-7 a unit, while PSPCL has procured 250 MW solar power at Rs. 2.33 a unit and allotted 150 MW of solar plants to be established in state at the rate of ?2.69 per unit.

PSPCL has also issued a default notice to the Talwandi Sabo Thermal Plant for its failure to give proper supply during last paddy season. According to PSPCL chairman-cum managing director A Venu Prasad, the penalty amount works out to be between ?600 and ?800 crore.