Last Updated: 30 Dec 2024

Plant's Power generation DOUBLED after acquisition^[1]
-- Power generation Capacity is at 77% under AAP Govt
-- Plant ran at only 35% of its capacity under private operator

Historic First in the country where a private thermal plant has been acquired by the state sector

-- Punjab Govt bought 540 MegaWatt private thermal power plant at Goindwal Sahib (Punjab) at a cost of Rs 1080 crore i.e. 2cr per MW^[2] on 01 Jan 2024
-- 11 Feb 2024: Launched as Sri Guru Amar Dass thermal power plant^[3]

In the past the State/Center governments used to sell their assets to the favorite individuals at ‘throw away’ prices^[2:1]

Punjab Govt SAVES ₹350 crore with new thermal plant every year^[4]

¶ Punjab Govt Benefits^[2:2]

Named Sri Guru Amardass Thermal Power plant after the 3rd Sikh Guru, earlier GVK Thermal plant

Benefits as Punjab has started its own coal mine

• Punjab's own coal mine started

Improved capacity usage

• Plant Load Factor (PLF) was only 34% till jan 2024, went up to 89% in July 2024^[5]

Other Benefits

• Surplus land of the project can be utilised in public interest by installing SuperCritical units under the state sector^[6]
• Costly Power Purchase agreement stands cancelled
• Ongoing litigations^[6:1]: The ongoing litigations with implications of 1000s crores get avoided
• Under the state sector more employment opportunities will be available for Punjab youth^[6:2]

¶ Purchase Comparison^[2:3]

Cheapest purchase (2 cr/MW) made of any other power plants by any state/private company

¶ Historical Situation: 2016-2023^[2:4]

High Power Cost

Ironically the GVK thermal plant was paid Rs 1718 crore fixed cost without even getting power

• Punjab government had purchased 11165 million units of power by paying Rs 7902 crore
• Average per unit of Rs 7.08 per unit was paid to the power plants, now estimated per unit cost will now be Rs 4.50 per unit
• Power Purchase Agreement which was highly skewed in favour of the private player

¶ GVK Thermal plant Details^[7]

• Located on 1,100 acres and has two units of 270 MW each in Goindwal Sahib (Punjab)
• Being a new plant, its power generation efficiency is high
• Cost of electricity production to reduce from Rs 6.50 per unit to Rs 4.60 per unit

¶ Private firm couldn't run it, went bankrupt^[7:1]

• Due to no proper coal linkage, the plant ran at maximum of only 45% of its capacity
• Punjab Govt with its own coal mine in Pichwara, Jharkhand which was operationalised in Dec 2022 is confident to be able to run it successful

References:

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1. https://www.babushahi.com/full-news.php?id=196905 ↩︎

2. https://www.babushahi.com/full-news.php?id=176880 ↩︎ ↩︎ ↩︎ ↩︎ ↩︎

3. https://www.punjabnewsexpress.com/punjab/news/punjab-cm-bhagwant-mann-and-aap-supremo-arvind-kejriwal-dedicates-sri-guru-amar-dass-thermal-power-plant-to-masses-239868 ↩︎

4. https://www.babushahi.com/view-news.php?id=195492 ↩︎

5. https://epaper.dainiksaveratimes.in/3900280/Punjab-main/The-Savera#page/5/2 ↩︎

6. https://www.babushahi.com/full-news.php?id=176888&headline=Acquiring-GVK-a-progressive-step-for-state-power-sector:-PSEB-Engineer's-Association  ↩︎ ↩︎ ↩︎

7. https://www.tribuneindia.com/news/punjab/pspcl-sole-bidder-state-set-to-purchase-private-power-plant-in-goindwal-sahib-521911 ↩︎ ↩︎