PSPCL paid ₹5,400 cr to pvt plants for power it did not draw

‘Power Surplus Punjab’ has cost the state a fortune, while also taking a huge toll on consumers’ pocket. The Punjab State Power Corporation Limited (PSPCL) has been paying fixed costs to Independent Power Producers (IPPs) for its failure to draw power from these. This is as per Power Purchase Agreements (PPA) with the IPPs and this deal was done to make sure the state has surplus power. These charges are ultimately passed on to consumers.

The clause, however, has proved counterproductive for the PSPCL as it has shelled ₹5,400 crore to these private thermal power plants, since they came on-stream.

The opposition has demanded a white paper on the PPAs, with the issue likely to snowball into a poll issue as payments have risen manifold over the years.