Other States

Cancel all one-sided PPAs, Punjab CM tells PSPCL

Punjab Chief Minister Amarinder Singh has ordered the Punjab State Power Corporation Limited (PSPCL) to cancel or revisit all the one-sided Power Purchase Agreements (PPAs) with private companies that are not contractually obligated to supply sufficient power to meet the State’s peak demand during the paddy sowing and summer season.

‘Revoke TSPL pact’

Taking note of the fiasco relating to Talwandi Sabo Power Limited (TSPL), Mansa — one of the largest private thermal plants in the State, which failed to perform in the current paddy season, the Chief Minister has directed PSPCL to revoke its PPA.

He has also asked the PSPCL to examine all the Power Purchase Agreements (PPAs) signed by the previous Shiromani Akali Dal-Bharatiya Janta Party government with various Independent Power Producers (IPPs), which were established basically to meet the power demands of the State, especially during paddy sowing and summer season. He has directed PSPCL to terminate or revisit all the lopsided PPAs that are not beneficial to the State.

Notably, pressure from within the party had been mounting on Capt. Amarinder-led government to cancel the PPAs, which was a key election promise during the 2017 Assembly polls.

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Printable version | Sep 18, 2021 12:42:18 AM | https://www.thehindu.com/news/national/other-states/cancel-all-one-sided-ppas-punjab-cm-tells-pspcl/article35596340.ece

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