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Punjab's Power Purchase Spend Set to Go Up Further

  • Though the SAD-BJP government has been claiming to make Punjab a power-surplus state for many years now and, more recently, governor Shivraj Patil stated the same in the assembly last week, the failure of state government to commission new plants has again forced Punjab State Power Corporation Ltd (PSPCL) to spend crores of rupees in purchasing power from other states to meet the growing power demand during the upcoming paddy season.To supply uninterrupted power to residents during the paddy season from June 10 to October 15, PSPCL authorities have made plans to purchase 32,000 lakh units (LUs) of power from other states, at a cost of about Rs 130 crore, sources said.

  • Of the total purchase, 16,000 LU units will come through banking arrangements from J&K, Uttarakhand, Himachal Pardesh, Gujarat, MP and Tamil Nadu, while the remaining will come through power purchase agreements with various states.During 2011, PSPCL had purchased power at Rs 3.92 per unit and spent around Rs 115 crore. This year, due to increase in power rates across the country, they will have to purchase power at Rs 4 per unit through Power Trading Corporation from various states, they said.

  • The hike in power rates has not only increased the paddy budget of PSPCL, it has also increased the annual power purchase budget of authorities. During 2011-12, PSPCL had proposed to buy power worth Rs 6,200 crore, while it has proposed a budget of Rs 7,200 crore for 2012-13."We have been spending crores every year to purchase power. This is happening as we have failed to start any new power project," said a senior officer, on condition of anonymity.

  • Due to good monsoons, PSPCL needed only Rs 5,608 crore to purchase power during 2011-12, despite having a budget of Rs 6,200 crore. However, due to increase in the number newly installed tubewells in state, it may have to spend more than its proposed budget of Rs 7,200 core, if there is no proper monsoon this year."Two new power projects at Talwandi Sabo and Goindwal will start working in December 2012 and February 2013. They would add a total 920 MW while the remaining projects will also start in the near future. We would become self-dependent in a few years," said PSPCL CMD K D Chaudhary.

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