Directed to revise PPAs, PSPCL had earlier justified pacts with private plants

Punjab State Power Corporation Limited (PSPCL) it seems is in a dilemma over power purchase agreements (PPAs) with private plants as it had earlier this year defended the pacts. This holds significance as chief minister Capt Amarinder Singh had asked the corporation to revise/cancel pacts with independent power producers, signed during the SAD-BJP regime.

PSPCL chairman-cum-managing director A Venu Parsad had on March 17, 2021, justified that independent power plants are needed for the state. He made the observation on a letter by principal secretary, finance, KAP Sihna, who had flagged issues of fixed costs being paid to private plants, power theft and higher tariff from renewable energy.