Punjab govt set to save Rs 450 cr in power generation, industry seeks relief

With the Punjab Government eyeing to save around Rs 450 crore annually after acquiring the 540 MW thermal plant at Goindwal Sahib from GVK, the state’s industry is expecting relief in power rates in the coming fiscal.

“Since April 2023, power price has been increased by 50 paise per unit with an increase of three per cent per annum. As per annual revenue requirement (ARR) petition filed with the Punjab State Electricity Regulatory Commission (PSERC) for 2024-25, the PSPCL will turn profitable by over Rs 1,500 crore. This profit should pass on to the industry that is already facing high power rates,” said Mahinder Gupta, president of Furnace Association of Mandi Gobindgarh.

The industry was also demanding that the annual three per cent hike in power prices should be done away with. “The industry has every right to demand some relief for farmers and domestic consumers, but any decision in this regard can be taken by the government after a nod from the PSERC,” All India Power Engineers Federation spokesperson VK Gupta said.

As per the ARR, the Punjab State Power Corporation limited (PSPCL) has sought backdoor revision in tariff for industry due to proposed changes in Time of Day (ToD) tariff schedule. Similarly, the PSPCL has proposed single energy charges for all commercial consumers with fixed charges as per existing load-based categorisation. ToD tariff is charged over and above the normal industrial tariff during particular time of day.

The government has announced that the power generated from this plant will cost Rs 4.50 per unit with a saving of around Rs 300-500 crore annually as coal from government-owned Pachhwara Coal Mine will be available.

“After acquiring the GVK thermal plant and supply of coal from Pachwara, the generation cost will be around Rs 4.50 per unit. The projected total annual saving may be around Rs 450 crore,” a senior PSPCL official said.

The total power subsidy is estimated at Rs 22,000 crore, of which Rs 9,000 crore is for domestic consumers on account of the 300 units free per month, Rs 3,000 crore for the industrial sector and Rs 10,000 crore for the agriculture sector