Punjab CM gives nod to termination of agreement to purchase power from GVK Goindwal Sahib

Punjab Chief Minister Charanjit Singh Channi Saturday approved the PSPCL’s proposal to terminate Power Purchase Agreement (PPA) with GVK Goindwal Sahib (2×270 mW).

Subsequently, the Punjab State Power Corporation Limited (PSPCL) issued a termination notice to the company. This is the first termination notice being issued to a thermal plant. This was a long-pending promise of the Congress government and was also among the 18-point agenda of the Congress high command handed over to former chief minister Amarinder Singh.

A preliminary default notice has been served by PSPCL to GVK Saturday for cancellation of PPA due to high power cost and falling lowest in the merit order.