540-MW Goindwal Sahib thermal plant on the block : The Tribune India

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540-MW Goindwal Sahib thermal plant on the block

Auction next week | PSPCL, Adani Power among bidders

540-MW Goindwal Sahib thermal plant on the block

Photo for representation. File photo



Tribune News Service

Ruchika M Khanna

Chandigarh, June 4

The 540-MW private thermal power plant at Goindwal Sahib will go under the hammer next week. Reason: The private company operating the plant, GVK Power, has gone in for corporate insolvency.

The sale, however, will have no impact on the availability of power from this plant. Whosoever wins the bid, the plant will continue to supply power to the PSPCL as the power purchase agreement will remain in force.

Cabinet panel to take call on bid

  • Power plant, spread over 1,100 acres in Tarn Taran district, has two units of 270 MW each
  • GVK Power, which is currently operating the plant, has gone in for corporate insolvency
  • Sale won’t impact the availability of power to the state as purchase pact to remain in force
  • Cabinet subcommittee constituted; will take call on financial bid by PSPCL to take over plant

Besides, the PSPCL is among the 12 parties that have evinced interest in acquiring the plant. Financial bids have been invited till June 15. A Cabinet subcommittee has been constituted to decide on the financial bid to be made for taking over the plant.

The committee, comprising Power Minister Harbhajan Singh ETO, Finance Minister Harpal Cheema and Agriculture Minister Gurmeet Singh Khudian, held a meeting on Friday to decide on the bid. The plant, spread over 1,100 acres in Tarn Taran district, has two units of 270 MW each. “Being a new plant, its efficiency will be high and buying it will benefit the state. When the thermal plant was envisaged, it had its own captive coal mine. But with the cancelling of coal blocks in 2014, the plant started running into huge losses as coal prices shot up. For several years, it ran up to 45 per cent of its capacity,” said a senior government officer.

The government is hopeful that if it acquires the plant, it will reduce its cost of power generation from the present Rs 6.50 per unit to Rs 4.60 per unit. It will also end the litigation with GVK Power. Among the potential bidders are Adani Power, Vedanta Power and Jindal Power.

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