Finances of Punjab Power State Corp set to improve Dec 3, 2018

Posted On : December 10, 2018

The all round  improvement is visible in Punjab power sector after Baldev Singh Sran  took over as CMD of Punjab State power Corporation Limited (PSPCL)  on June 6 this year.

 

With the out of box thinking of Baldev Singh, PSPCL  has managed the power requirements of Punjab  in a commendable manner without going in for  usual short term power purchases which are to the tune of Rs. 600 crore.. The finances of PSPCL are going to improve after the operationalisation of Pachhwara coal mines and completion of  Shahpur Kandi Project.

Punjab is a power surplus state with the commissioning of three private sector thermal plants but it was not able to consume this power round the year leading to payment of fixed charges thus burdening power consumers of the state. Following the lead of last year PSPCL has sold power amounting to Rs. 976 crore till date and has become the top seller at Indian Energy Exchange.

The power consumption in industrial sector of Punjab has increased by 10% after government reduced retail industrial tariff to Rs. 5 per unit and proactive policies of PSPCL. Punjab Government should follow with the Government of India  for sale of surplus power available for 8 months in a year to neighbouring countries.

During paddy season PSPCL was able to meet the maximum power demand of 12638 MW on July 10 in comparison to 11705 MW of previous year. PSPCL supplied 2749 lakh units of energy within Punjab state on August 4  highest so far during a day and in addition sold 6 lakh units  in power exchange on that same day. This is despite the fact that there has been a less hydro generation to the tune of 350 MW from BBMB and PSPCL’s own  hydro projects .
PSPCL has succeeded in reviving the tie-up with a coal mine in Jharkhand to run the state-run thermal power plants by getting cheap fuel. Letter of Award (LOA) has been issued after successful completion  of transparent reverse tendering with lowest quoted rate of Rs. 840 per MT on August 8. Operationalization of Pachhwara Coal Mine would result in saving of about Rs. 600 crore per year with  an annual linkage of 7.0 Million Tones .