Problem for Punjab State Power Corporation Limited (PSPCL)

Context:  Shut thermal plants are creating a problem for Punjab State Power Corporation Limited (PSPCL).

More about news

  • The demand for power in the winters gets reduced nationwide.
  • In this scenario, PSPCL has to shut all the units of its thermal power plants.
  • Rather, it seeks to buy power from the private entities to meet the power demand.
  • The power demand is laying between 5500 MW and 6000 MW; but during the night time, the demand may drop to 3000 MW.
  • The per-unit production cost of power in state-owned thermal power plants is ₹ 3.80.
  • Whereas the cost of power from private players is around ₹ 3. 14 to ₹ 3.66 per unit.
  • The per-unit cost which could be getting by selling the state thermal plants’ power would be around ₹ 3.10, which cannot cover the costs.
  • The purchase power agreements with the private players, due to which they are getting undue profits.
  • Also, as per the directive of the Supreme Court, washing charges of ₹2800 crore are to be paid to Talwandi sabo and Rajpura Thermal power plants.
  • So, these costs are big trouble for the state government.
  • In the case of non-purchase of the committed amount of power, the fixed cost has to be paid.

Thermal power plants in Punjab

  • Lehra Mohabbat
  • Ropar
  • Goindwal Sahib.
  • Talwandi sabo

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