To promote clean energy and to meet Punjab’s future power supply demand, Punjab Government has signed a Power Purchase Agreement (PPA) of 1200 MW with Sutlej Jal Vidyut Nigam (SJVN), a leading firm of Renewable energy and subsidiary of Bhakra Beas Management Board (BBMB) — set to become the first state to implement policy for banking the power.
Chief Minister Bhagwant Mann has described the move as a momentous step towards a cleaner and more sustainable energy future.
Sharing details of the historic initiative, Mann highlighted its significance in meeting the state's growing power demand and promoting clean energy. “Punjab State Power Corporation Limited (PSPCL) had initiated tenders for the procurement of solar power from projects across India, with SJVN's Green Energy Limited offering a rate of Rs 2.53 per unit for 1000 MW from Bikaner (Rajasthan) and Bhuj (Gujarat), along with Rs 2.75 per unit for 200 MW at Hoshiarpur (Punjab). Notably, the Swiss Challenge Method (SCM) was employed for the first time to invite counter bids, resulting in cost-saving negotiations,” he said.
Mann revealed that the initial bid of Rs 2.59 per unit was skillfully negotiated down to Rs 2.53 per unit, while the bid for 200 MW, initially at Rs 2.79 per unit, was agreed upon at Rs 2.75 per unit. These successful negotiations are projected to save the state an impressive Rs 431 crore, and the projects are expected to commence soon to minimize transmission costs, he added.
Emphasizing a contrast with previous governments, Mann criticized the practice of signing power agreements at inflated rates, asserting that this PPA has been secured at a nominal cost. The move is poised to save substantial public funds and yield significant benefits for the state's economy, he added.
An instrumental aspect of this initiative is Punjab's impending status as the first state to implement a power banking policy, said the Chief Minister, while describing it as a revolutionary step towards achieving power surplus, which will enable a consistent and affordable power supply to the citizens.
The PPA rates, fixed for a 25-year period, ensure cost stability and alleviate concerns of escalating costs. Moreover, PSPCL is exempt from transmission charges and losses associated with the agreement. Solar power projects are anticipated to be operational within 18 months, generating an estimated daily production of 83 lakh units of green power. This surplus energy during daylight hours is expected to significantly contribute to powering agricultural tubewells.
The commitment to transparency is evident in the public disclosure of agreements with companies, in stark contrast to past practices. Chief Minister emphasized the importance of embracing green power in the contemporary age and lauded this agreement as the country's largest solar power purchase agreement.
Looking ahead, the Government is actively pursuing the acquisition of the Goindwal power plant and revising agreement clauses with private thermal plants. These efforts are aimed at ensuring immediate power supply to the people.
Assembly Session Was Legal: Mann
Amid a tussle between the AAP dispensation in Punjab and the Raj Bhavan over various issues, Chief Minister Mann dismissed the Governor's claim that convening of the assembly session in June was “'patently illegal'”, saying that the government was well within its rights to do so. Responding to a media query regarding when the Monsoon session of Punjab Vidhan Sabha would be held, Mann said: “'It will be held, who can stop that…Last session (in June) was also legal. Governor may be having some advisor...otherwise the (budget) session (held earlier) had not been prorogued but (adjourned) sine die and it could have been convened anytime.”
Punjab Governor Banwarilal Purohit had, on the basis of “opinion…taken from one of the leading constitutional experts”, said last month that the government calling the two-day assembly session in June was “patently illegal”. Asked about Purohit's remark on him not attending the ''At Home'' reception on Independence Day, Mann downplayed the issue saying that it does not matter as the Governor is elder to him.
On Wednesday, the Governor has taken a dig at Chief Minister's decision not to attend the ‘At Home’ saying that it was his own ''discernment'' and perhaps he was afraid of the ceremonial cannons placed outside the Raj Bhavan.
Rs 5L for Villages Electing Sarpanch Unanimously
On the upcoming nagar panchayat polls, he said that the state government would give a cash incentive of Rs five lakhs to a village whose sarpanch is unanimously elected. “It is better if sarpanches are unanimously elected as it fosters brotherhood in villages,” he added.