Punjab to sell its power share in BBMB to PSPCL ar Rs. 2.11 per unit
Vinod Kumar Gupta, 20-Apr-2011 07:33:54 AM
Punjab to sell its power share in BBMB to PSPCL ar Rs. 2.11 per unit

Wednesday April 20, 2011

Chandigarh

Punjab Government has issued notification by which Punjab’s share in BBMB would be sold to Punjab State Power Corporation Ltd. Rs. 2.11 per unit .

This power has a generation cost of 33 paisa per unit. By selling BBMB power of over 4200 million units mu to PSPCL , Punjab Government will get a revenue of Rs 760 Cr which would be adjusted against agricultural power subsidy. The rate of 211 paise per unit has been worked out on cost of thermal generation.

A senior official said on condition of anonymity that under electricity Act 2003 the State govt has no power to notify a Tariff which is under purview of Regulator. This notification of GOP has upset the ARR petition of PSPCL for 2011-12. When the tariff order was in final stage of being issued the government P notification has been issued with the declared purpose to reduce subsidy burden of state government. However the extra power purchase cost would lead to extra tariff hike to consumers since power purchase is the largest element of ARR..

The Punjab Governments decision to enhance the charges by nearly 7 times has come as a rude shick to PSPCL . BBMB has been supplying power to partner state at 33 paise per unit . Punjab Governments decision that it is the state government that is a partner in BBMB and PSPCL is not partner in BBMB .