PSPCL's power purchase expenses set to increase
Bahadurjeet Singh
RUPNAGAR:

The power purchase bill of the Punjab State Power Corporation Limited (PSPCL) is likely to increase in the coming financial year due to the increased power demand, costly short-term power purchase and expected rise in generation costs.
Initiatives for the construction of new thermal projects by private companies were taken by the Punjab government in the past five years. Some projects have been awarded on competitive bidding basis, while others were signed through the memorandum of understand

ing (MoU) route as per the new generation policy. But none of the projects offered to private companies have reached the completion stage so far. The first unit of the Talwandi Sabo project is expected by the end of this year.
The PSPCL has recently signed short-term power purchase agreements (PPAs) with various firms to supply eighthour power to agricultural pump sets during the paddy season this year. The total power to be purchased for the paddy season would be around 3,200 MU at Rs 4 per unit. The cost of the power being purchased would amounts to Rs 128 crore.

In its tariff petition before the Punjab State Electricity Regulatory Commission, the PSPCL has projected that power purchase worth Rs 7,207 crore would be purchased in 2012-13. The power purchase during the current financial year (2011-12) is likely to be Rs 5,608 crore. It was on the lower side due to the good monsoon.
The total purchase expected in 2012-13 is 18,917 MU, including 14,420 MU (long-term) and 4,497 MU (short-term). The projected power purchase cost of Rs 7,207 crore will increase on account of increase in coal prices and hike in railway freight charges.