PSEB signs MoU with GVK power for thermal power project

Amritsar, Dec 19 (UNI) The Punjab State Electricity Board (PSEB) today inked an MoU with GVK Power Ltd for the prestigious 600 MW thermal power project to be set up at Goindwal Sahib in adjoining Tarn Taran district.

Prime Minister Manmohan Singh is scheduled to inaugurate the project tomorrow from here.

The power purchase agreement (PPA), signed by Mr Y S Ratra, PSEB Chairman and Mr G V Krishan Reddy, Chairman GVK Power envisions power sharing between the two on a long term basis for a period of 25 years.

The MoU was signed in the presence of Chief Minister Capt Amarinder Singh and Deputy Chief Minister Rajinder Kaur Bhattal, who holds the power portfolio.

Giving details about the project, Mr Ratra said the thermal project was allocated to GVK through an international competitive bidding route. The first unit of 300 MW was planned for commissioning within 30 months from the financial closure which will not be later than six months from the date of approval of PPA by Punjab State Electricity Regulatory Commission (PSERC) and second unit within six months.

Mr Ratra said coal for this project shall be used from an allocated captive coal block (Tokisud Coal Mine). The approximate cost of the project shall be the tune of Rs 2,500 Crore to 3,000 crore.

This will be the first power project in the state which is being devloped by a private developer. The power to be generated at this project shall be to the tune of 3,850 MUs at the station Bus Bar at 80 per cent Plant Load Factor.

The tariff shall be approved by PSERC since the project is being set up at a location which is a load centre of adjoining areas and the power evacuated will be utilized in the districts of Tarn Taran, Kapurthala and Amritsar.

Mr Ratra said with a completion of the project, there will be a considerable improvement in the power supply position of the state and it will also enable PSEB to provide reliable supply to the consumers.

UNI XC-HS DKS KP2131