To promote clean energy and meet the future power supply demand of Punjab, the state government has signed a Power Purchase Agreement (PPA) of 1200 megawatt (MW) with state-owned Sutlej Jal Vidyut Nigam (SJVN).
Divulging details, the Chief Minister Bhagwant Mann said the Punjab State Power Corporation Limited (PSPCL) had floated tenders for procurement of power from solar projects located in Punjab and anywhere else across the country.
He said that SJVN Green Energy Limited proposed Rs 2.53 per unit from 1000 MW in Bikaner (Rajasthan) and Bhuj (Gujarat) and Rs 2.75 per unit from 200 MW at Hoshiarpur (Punjab). Mann said for the first time, the Swiss Challenge Method (SCM) was implemented to invite counter bidding.
The CM said the earlier bidding was of 2.59 per unit but it was negotiated and brought to Rs 2.53 per unit. He said a 200 MW bid was made at Rs 2.79 but was finally agreed to Rs 2.75 per unit.
Mann said that the state government will save Rs 431 crore through this negotiation, adding that the earlier governments had mercilessly plundered public money by signing these agreements to benefit the private players.
Mann said Punjab will soon become the first state to implement policy for banking the power. He said this will be a revolutionary step aimed at further making the state power surplus in the country.
The CM said PPA rates have been fixed for 25 years without any further rise in cost. He further said that no transmission charges and no transmission losses will not be paid by PSPCL. Mann said solar power projects will be made functional within 18 months.
The CM said estimated daily production of green power is 83 lakh units. He said it will further help in supplying power to agricultural tubewells during the day as solar energy will be available in the day.
Mann said free power to the farmers will continue in the coming days too. He said that there is no proposal to levy any rate on free power to the food growers. He said the state has surplus power for the farmers adding that there is no dearth of funds for giving subsidy to the farmers.