NTPC signs power purchase agreement for Gidderbaha plant

PTI Dec 11, 2010, 03.21pm IST Tags:

Talwandi Sabo| Punjab State Power Corporation Ltd (| Punjab State Power Corporation Ltd| PSPCL| NTPC Ltd.| M K V Rao

PATIALA: Public sector undertaking NTPC today signed a power purchase agreement with Punjab State Power Corporation Ltd ( PSPCL) for 2,640 MW coal-based thermal power project at Gidderbaha for Rs 15,000 crore. The agreement was signed here by M K V Rao, Executive Director (Commercial) of NTPC and Arun K Verma, Director Distribution of Powercom (PSPCL) in the presence of Chairman Powercom K D Chaudhary. It is after 40 years that Punjab has been able to get such a huge PSU investment in the state, an official spokesman said here. The plant consists of four units of 660 MW each, which would be entirely funded by NTPC. With the setting up of Gidderbaha Thermal Plant by NTPC, the work on five mega thermal plants at Talwandi Sabo, Goindwal, Rajpura, Mansa and Giddarbaha has been put on full throttle, he said. The combined generation capacity of five plants is 10,590 MW being set up with an investment of Rs 52,800 crore. Besides this Punjab would get 2,272 MW share from the investment made by the State in ultra mega thermal plants set up outside the state, he said. Besides, the Punjab Government has been able to secure 1966 MW capacity from the new plants being set up by the Central Government. The spokesman said that 2,640 MW Gidderbaha power plant will be the biggest thermal power project in Punjab, which will help in developing ancillary industries and generate employment.

The Punjab Government has agreed to facilitate acquisition of land, issued notices in this regard, allocation of water and already conveyed an in-principle clearance for about 2,316 acres of land for the project, the spokesman said. At least 50 per cent of the power from the plant shall be allocated to Punjab, he said.

Punjab allots Gidderbaha power plant to NTPC

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PSU to complete Rs 15,000-crore project in three years The Punjab government has allotted the biggest thermal power plant being set up in Gidderbaha to National Thermal Power Corporation Limited (NTPC). The two sides signed a memorandum of understanding in this regard on Thursday. According to the agreement, NTPC will complete the 2,640 MW coal-based thermal power project in the home district of the chief minister within 36 months. Its estimated cost is Rs 15,000 crore. This is the biggest thermal power in Punjab, which will help in developing ancillary industries and provide employment opportunities in the area. The other two projects the Talwandi Sabo thermal power plant and Rajpura plant are being set up by the public sector. Today, the MoU was signed by Punjabs Principal Secretary, Power, Arun Goel and Director/Commercial, NTPC I J Kapoor. Chairman and managing Director K D Chaudhri and Director/Generation G S Chhabra Punjab State Power Corporation Limited were also present on the occasion. The Punjab government has also agreed to facilitate the acquisition of land, allocation of water and conveyed in-principle clearance for about 2,316 acres and 125 cusecs of water for the thermal plant.

The state government has already issued a notification under Section 4 of Land Acquisition Act for 2,316 acres for the project. The plant consist of four units of 660MW each which will be funded by NTPC. According to the agreement, at least 50 per cent of the power from the plant will be allocated to Punjab. NTPC has sought long term coal linkage from the Ministry of Coal, and Punjab has assured co-operation in obtaining the coal linkage for this project. The Punjab State Power Corporation Limited (PSPCL), which was keen to take the project, on its part, has also agreed to provide all reports for specific studies/investigations, including EIA studies conducted at site for preparation of feasibility report. The cost incurred on all such reports shall be reimbursed by NTPC. The PSPCL will soon enter a power purchase agreement with NTPC for purchase of power allocated from the proposed project, and the tariff for the sale of power shall be as determined by Central Electricity Regulatory Commission.

NTPCs Gidderbaha power plant to start generation by March 2015

Starting November 2012, one power plant to be commissioned each year in the state The next government in Punjab would come to power, literally. Starting November 2012, all the four mega power plants will be commissioned till 2015, one every year. With the land acquisition for the 2640 MW Gidderbaha Power Plant underway, the National Thermal Power Corporation (NTPC) has given the timeline of March 2015 for commissioning of first unit (660 MW) of the plant. A review meeting will be held between the NTPC and Punjab State Power Corporation Limited next week. The state would be entitled to 50 per cent allocation of power from the plant, MD (Generation) GS Chabbra said. The first to roll out in November 2012 will be the 2640 MW Talwandi Sabo mega power plant being developed by the Starlite Group. Its first unit of 660 MW will be commissioned in November 2012 while its remaining three units will get operational in interval of three months of one another. Punjab is entitled to 100 per cent share in power generated by the first three units. But in the fourth, sanctioned under the New Power Generation Policy, 2010, state's share is

limited to 15 per cent, five per cent of which can ve availed at variable cost and 10 per cent at the bidding rate. Starlite has applied to the union ministry for grant of coal linkage for the fourth unit. It will be followed by commissioning of the first unit of the Goinwal Sahib Power Plant in January 2013. Being developed by the GVK Group, the 540-MW project has been hanging fire for more than a decade since it was first sanctioned. Its second unit (270 MW) will be commissioned after four months. GVK has been sanctioned a coal block in Jharkhand which it will develop and mine to meet its total coal requirement for the project. Then lined up for commissioning in January 2014 is the first unit of 2800-MW Rajpura Thermal Plant being developed by the L&T Group. Punjab has 100 per cent share in its first three units (700 MW each) while the fourth, sanctioned under the New Generation Policy, would allow the power producer to sell the remaining 85 per cent in the grid. Also coming under the new generation policy is the 660 MW supercritical thermal plant of India Bulls at Mansa. "The land for the project is under acquisition. Since it is a greenfield project and not an extension of an existing plant, Punjab can exercise the right to be allocated up to 70 per cent of power generated by this plant under the policy," Chabbra added.

NTPC to execute Gidderbaha power project [The Pioneer, October 09, 2010]
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PSEB News

NTPC to execute Gidderbaha power project October 09, 2010 6:25:02 AM Monika | Chandigarh Engineers body cries foul

Punjabs ambitious Gidderbaha power project of 2,640 mega watt (MW) will be executed by the NTPC, the public sector entity with 50 per cent shares in the project. It is an important power project aimed at addressing power shortage problem in the State. The move, however, is being opposed by the States various engineers associations and federations. They rued that Punjab would not be able to meet the long-term demand arising out of the fluctuations in demand in case the State loses control on thermal plants. With the power shortage in the State growing at the rate of 10 per cent annually, the State is apparently destined to loose control on its power sector operations after the NTPC takes over the execution of Gidderbaha Thermal Project. The power operations have almost gone out of hand for the State following the State Governments decision to give power projects to private players through bidding and now by signing Memorandum of Understanding (MoU). Punjab has the highest per capita consumption of power in the country at 1,100 units, as compared to the national average of about 750 units. Moreover, there is a huge gap between demand and supply, at present, making it difficult for the State authorities to meet the demand of nearly 9,000 MW, with the total installed capacity of 6,841 MW. Interestingly, the projects initiated to rule out the shortfall thermal plants at Rajpura, Talwandi Sabo, and Goindwal Sahib are now going out of the hand of the State Government, with private parties setting up these projects. Besides, Gidderbaha thermal plantaimed for the same is all set to go to the Centres kitty. With the commissioning of all new thermal power projects in private sector, the share of Punjab State Electricity Board (PSEB) would be reduced to 19 per cent that will ultimately adversely affect its capabilities to supply power optimally.Additionally, with the NTPC taking over the project, only 50 per cent share of the power will be available for Punjab, depending upon negotiations and the rest of the power generated would be supplied to any other State as per Government of Indias guidelines. Also, in this case, the NTPC may fund the project then or the Punjab Government would be asked to fund the project partially. In this regard, the NTPC officials were on visit to Chandigarh on Wednesday to discuss and finalise the matter regarding execution of lingering Gidderbaha thermal project with Punjab Government, including the Powercom officials. Causing resentment among the engineers association in the State, the move to hand over Gidderbaha thermal plant to the NTPC has received thumbs-down from them. Gidderbaha thermal project should be entrusted to Powercom to do the execution departmentally.

The Powercom engineers have been making repeated pleas that some capacity addition must be planned through State sector but nothing has been done so for despite assurances by the State Government, said PSEB Engineers' Association president HS Bedi. Bedi added that the funding of the Gidderbaha thermal project is possible through the Power Finance Corporation and the State must hand over the project to the PSEB for execution. Despite having such plants in our State, we would then have to buy power on higher rates from the Centre when the demand rises and also have to pay a fixed amount even if the demand reduces. People will not be affected now, but after five years time. One plant should rest with the state sector, he added. Also rebuffing the Governments move to involve MoUs or private players, a senior Government official, requesting anonymity, said: The situation as such has become bit worse by awarding more capacity through MoU which was clearly illegal and against the national tariff policy, the Electricity Policy and the guidelines of Central Electricity Regulatory Commission (CERC) that prescribe only competitive bidding route for awarding new power projects.