With the all three independent power producers (IPPs) in Punjab firing up all of their thermal units, the power situation in the state has further improved enabling the Punjab State Power Corporation Limited (PSPCL) to go in for banking arrangement while shutting down state-owned thermal units.

As on Monday, the state power demand was hovering around 5,600 to 6,000 MW which was being met by the private thermal power producers, including 2X700 MW units at Rajpura, 3X660 MW units at Talwandi Sabo and 2X270 MW units of GVK at Goindwal.

PSPCL was getting 3,692 MW from power from the three independent power producers, including 1,320 MW of power from Rajpura, 1,864 from Talwandi Sabo and 508 MW from GVK, while the hydro units were shipping in 444 MW, and solar and biomass 325 MW.

It is probably for the first time that all unit of the IPPs were generating power simultaneously at full throttle, as earlier one to two of their units had remained shut due to various reasons, including technical snags.

While, the state-owned thermal power plant at Bathinda has been shut down completely, the four units of 220 MW at Ropar thermal power plant and two 210 MW units and two 250 MW units at Lehra Mohabbat were lying shut due to surplus power available in the state.

PSPCL chairman-cum-managing-director (CMD) Baldev Singh Sran said since not running the IPPs adds up to the cost of power for the corporation by way of fixed charges that are to be paid to the private players, they gave preference to the IPPs when it came to buying power. He said this year the corporation had also enhanced the power banking arrangements with the southern states to cover up the fixed charges.

From April till October this year, the PSPCL had managed to sell surplus power worth Rs 1,008 crore through open exchange thus effective a saving if Rs 400 crore (the rest was the cost of power paid by PSPCL).

Besides, the corporation was also likely to improve its financial position in the next year with the re-operationalization of the Pachwara coal mines that would effect a Rs 650 core saving on cost of coal and by 2022 when the Shahpur Kandi project get commissioned, the corporation would start saving another Rs 850 crore annually that would go a long way in strengthening the financial position of the power corporation, the CMD said.