Former Punjab minister Rana Gurjit demands to investigate power purchase agreements Sun, Dec 29, 2019,

Posted On : April 10, 2020

Rana Gurjit Singh Ex Power Minister Punjab and MLA Kapurthala has demanded an investigation by a Supreme Court judge into the power purchase agreements of Talwandi Sabo and Rajpura thermal plants to fix responsibility into loot indulged by the previous Akali Govt.The power  purchase agreements of these thermal plants were knowingly designed to favor the private
 investors.

The recent decision of the Supreme Court to pay coal washing charges of Rs 2800 crore to Talwandi Sabo and Rajpura thermal has come as a shock to the state of Punjab and the consumers of power who shall be saddled with this burden. The annual additional cost of washing charges is Rs. 275 Cr for Talwandi Sabo and Rs.225 cr for Rajpura thermal plant.
It may be mentioned that the private generators lost the case in PSERC and CERC but finally won in Supreme Court.

Rana alleged that these two thermal plants are a mega scandal of Rs. 65000 crore burden on people of Punjab being the difference in the tariff structure of similar plants in other parts of India through a conspiracy hatched by the previous Akali Govt in the name of " surplus power".

The present additional burden of 2800 crore has an interest component of Rs 600 crore which could be avoided had the right decision been taken at that time when the private investors demanded them exploiting loopholes left in PPAs by the previous Akali regime. The unfortunate part is that the additional burden of Rs 500 crore shall continue throughout the life of these two thermal plants. It will tantamount to an additional burden of over Rs 12000 crore through the life of these plants thereby raising the size of scandal from Rs 65000 crore to 77000 crores