NTPC to execute Gidderbaha power project
October 09, 2010 6:25:02 AM

Monika | Chandigarh

Engineers’ body cries foul

Punjab’s ambitious Gidderbaha power project of 2,640 mega watt (MW) will be executed by the NTPC, the public sector entity with 50 per cent shares in the project. It is an important power project aimed at addressing power shortage problem in the State.

The move, however, is being opposed by the State’s various engineer’s associations and federations. They rued that Punjab would not be able to meet the long-term demand arising out of the fluctuations in demand in case the State loses control on thermal plants.

With the power shortage in the State growing at the rate of 10 per cent annually, the State is apparently destined to loose control on its power sector operations after the NTPC takes over the execution of Gidderbaha Thermal Project.

The power operations have almost gone out of hand for the State following the State Government’s decision to give power projects to private players through bidding and now by signing Memorandum of Understanding (MoU).

Punjab has the highest per capita consumption of power in the country at 1,100 units, as compared to the national average of about 750 units. Moreover, there is a huge gap between demand and supply, at present, making it difficult for the State authorities to meet the demand of nearly 9,000 MW, with the total installed capacity of 6,841 MW.

Interestingly, the projects initiated to rule out the shortfall — thermal plants at Rajpura, Talwandi Sabo, and Goindwal Sahib — are now going out of the hand of the State Government, with private parties setting up these projects. Besides, Gidderbaha thermal plant—aimed for the same is all set to go to the Centre’s kitty.

With the commissioning of all new thermal power projects in private sector, the share of Punjab State Electricity Board (PSEB) would be reduced to 19 per cent that will ultimately adversely affect its capabilities to supply power optimally.Additionally, with the NTPC taking over the project, only 50 per cent share of the power will be available for Punjab, depending upon negotiations and the rest of the power generated would be supplied to any other State as per Government of India’s
guidelines.

Also, in this case, the NTPC may fund the project then or the Punjab Government would be asked to fund the project partially.

In this regard, the NTPC officials were on visit to Chandigarh on Wednesday to discuss and finalise the matter regarding execution of lingering Gidderbaha thermal project with Punjab Government, including the Powercom officials.

Causing resentment among the engineers’ association in the State, the move to hand over Gidderbaha thermal plant to the NTPC has received thumbs-down from them. “Gidderbaha thermal project should be entrusted to Powercom to do the execution departmentally.

The Powercom engineers have been making repeated pleas that some capacity addition must be planned through State sector but nothing has been done so for despite assurances by the State Government,” said PSEB Engineers' Association president HS Bedi.

Bedi added that the funding of the Gidderbaha thermal project is possible through the Power Finance Corporation and the State must hand over the project to the PSEB for execution.

“Despite having such plants in our State, we would then have to buy power on higher rates from the Centre when the demand rises and also have to pay a fixed amount even if the demand reduces. People will not be affected now, but after five years’ time. One plant should rest with the state sector,” he added.

Also rebuffing the Government’s move to involve MoUs or private players, a senior Government official, requesting anonymity, said: “The situation as such has become bit worse by awarding more capacity through MoU which was clearly illegal and against the national tariff policy, the Electricity Policy and the guidelines of Central Electricity Regulatory Commission (CERC) that prescribe only competitive bidding route for awarding new power projects.