PSPCL take control of 540 MW GVK thermal after paying Rs 1080 Crore

CHANDIGARH: The Punjab State Power Corporation Ltd.(PSPCL) has received the completed charge of the 540 MW 'Goindwal Thermal Plant' on Tuesday. The shares of the thermal have been transferred to Guru Amardas Thermal Plant Limited after Powercom handed over Rs 1080 crore of the purchase amount to bankers.

The Punjab government has purchased a 540 MW GVK Goindwal Thermal Plant for Rs 1080 crore, which was approved by the National Company Law Tribunal in Hyderabad on December 22, 2023. After nearly a month and a half of processing, Goindwal Thermal has formally joined the public sector.

Chief Minister Bhagwant Mann will dedicate Goindwal Thermal Plant to Punjabis on the occasion of Halka Khadur Sahib's rally on February 11. Tejpur Singh Secretary Power and Baldebv Singh Sran , CMD PSPCL followed the purchase process for about seven months.

It may be mentioned that , the Punjab cabinet gave the green flag to buy Goindwal Thermal on June 10, 2023. PSPCL had made a financial bid to buy the thermal only in June 2023 after the government approval as the company that runs this thermal had gone out of the 'GVK Group'.

PSPCL has taken a loan of Rs 1080 crores for the purchase of Goindwal Thermal Plant from Power Finance Corporation. The Central Corporation approved a loan of Rs 1080 crores some time ago.

PSERC in its order observed that PSPCL’s bid of Rs. 1080 crores for a project assessed to have a ‘Fair Value in the range of Rs. 1785.93 crores to Rs. 1955.42 crores ’ and an ‘Average Liquidation Value of Rs.1347.97 crores is most economical option.

Now PSPCL will use better quality coal available at an economical cost from its own Pachwara Mine after approval of coal ministry. The variable cost of generation is likely to be around Rs. 3.40 per unit as compared to an existing average of Rs. 3.98 per unit.

Wiith this take over it would avoid a potential liability/ burden of about Rs. 3000 crores.