Rajpura thermal power project to go to Cabinet
Jangveer Singh
Tribune News Service

Chandigarh, February 12
Punjab government’s drive of mega power projects may get delayed further with the lone bid for the Rajpura thermal project likely to be forwarded to the Cabinet for approval with the Punjab State Electricity Board (PSEB) and high- level negotiation committee failing to take decision on the issue.

The private player - Lanco, had submitted lone bid for the 1200 mega watt Rajpura project offering power at average rate of Rs 3.38 per unit a few months back. The special purpose vehicle (SPV) formed by the PSEB for the purpose had opened the bid after permission of the State Electricity Regulatory Commission but referred the matter to the PSEB. The board passed the buck to the government saying the bid, was on the higher side.

Sources said the government formed a negotiating committee headed by the Chief Secretary, which discussed the bid with Lanco. They said following this Lanco had agreed to lower per unit price to Rs 3.30 , reduction of eight paisa per unit.

Sources said the negotiating committee now sent the negotiated price to the PSEB for consideration and asked the PSEB whether it should be accepted. It has also asked the board to give suggestions whether the contract should be rebid or executed by the board itself.

Sources said the issue was likely to be taken up to the Cabinet for final approval as unanimity on the per unit price was yet to emerge even though the PSEB earlier obliquely justified the apparent high cost of power generation saying there had been change in the investment environment.

However others claim the rate is high and cite the example of similar projects awarded in Jhajjar (Haryana) for Rs 2.99 per unit and at Karchana (Uttar Pradesh) for Rs 2.97 per unit. They claim one-paisa increase translates into cost difference of Rs 1 crore per year and even if Lanco had agreed to Rs 3.30 per unit, it was still very high.