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Punjab government terminates Power Purchase Agreement with GVK Goindwal Sahib

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The City Headlines

Ludhiana, October 30

The Punjab government has given the approval to terminate GVK Goindwal Sahib (2×270 MW) Power Purchase Agreement. Therefore, Punjab State Power Corporation Limited has issued a termination notice to the company.

According to the reports, a preliminary default notice has been served by PSPCL to GVK for the cancellation of PPA due to high power cost and falling lowest in the merit order.

Charanjit Singh Channi also said that this step was taken to safeguard the interests of the consumers. A spokesperson from the Chief Minister’s office reportedly said that that GVK was required to arrange a captive coal mine. However, it failed to do so, even after a lapse of over five years of synchronization with the grid.

The spokesperson also said that the capacity charges are being decided by the Punjab State Electricity Regulatory Commission based on the capital cost of around Rs. 3058 crore, equivalent to Rs. 1.61 per unit fixed cost. He informed that the GVK had moved to the Appellate Tribunal for Electricity (APTEL) for claiming higher fixed tune of Rs. 2.50 per unit.

Also read: Firing in Ludhiana’s Sundar Nagar, robbers enter finance company’s office

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