Engineers want MoU with NTPC scrapped
Umesh Dewan
Tribune News Service

Patiala, November 29
Representatives of the PSEB Engineers Association have appealed to Punjab Chief Minister Parkash Singh Badal for reconsidering the decision, whereby the state government had signed a memorandum of understanding (MoU) with the National Thermal Power Corporation (NTPC) to set up a 2,640MW coal-based power project at Gidderbaha at the cost of Rs 15,000 crore.

According to the association, there was an immediate need to review the decision before any further progress was made in the matter. Association president HS Bedi demanded that the MoU, signed in October, should be scrapped. Bedi has urged Badal to assign the project to the Punjab State Power Corporation Limited (PSPCL) for execution under state sector.

Speaking to The Tribune, Bedi said, “In the next three to five years, Punjab will increase its power generation capacity, mainly through private companies. Power projects coming up at Rajpura, Goindwal Sahib, Talwandi Sabo and Mansa have been awarded to private companies. Now, the state government is in process of signing of Power Purchase Agreement with NTPC pertaining to the Gidderbaha Thermal Project (GTP). Our association strongly opposes this and the MoU should be scrapped without any delay.”

Association general secretary Bhupinder Singh said the private or central sector power generators have the tendency to operate their plants to avail maximum benefit under the availability based tariff, irrespective of the requirements of PSPCL, which would increase the cost of power thus leading to an increased in tariff in Punjab.

“It is ironical that despite clear recommendations of the PSPCL management, duly endorsed by principal secretary, power and chief secretary that the Gidderbaha project should be executed under state sector, the 2640-MW GTP has been awarded to NTPC,” he said.

The association leaders said no state in India except Punjab had planned generation of entire power capacity addition through private or central sector.

“Majority of the states, except Punjab, have planned at least 40 to 50 per cent new power generation capacity under the state sector,” said Bedi. He said that power generated at GTP by NTPC would be sold to Punjab at the rates approved by the Central Electricity Regulatory Commission and that it was a fact that power from plants established on MoU basis was costlier than those awarded through competitive bidding.

The association has urged the Chief Minister to convene an emergent meeting.