Mukerian plant hits roadblock
Vishal Rambani
PATIALA:

QUESTION MARK Govt refers back proposal with queries on financing ( )

The PSPCL has already worked out a financial model. We are committed to the project and it will be approved quite soon K D C H AU D H RY CMD, PSPCL

The Punjab State Power PATIALA: The Punjab State Power Corporation Limited (PSPCL) proposal to set up 1320-MW thermal power plant under the state sector has hit a roadblock as the Punjab government has referred back the proposal with queries related to 'financing' for the project.
The project is likely to cost Rs 8,000 crore and a PSPCL team has identified two sites for setting up the project in Mukerian.

Sources said the government was in no mood to finance the project and wanted to know from where and how much PSPCL would contribute to the project. The secretary of power of department has referred back the file to PSPCL, seeking clarifications on financial model, so that the government can take the final decision. These queries will further delay the project on which PSPCL is working since 2009.

The PSEB Engineers' Association (PSEBEA) is pressing the state government for making this a state sector project.

Currently, PSPCL is meeting 52% of the demand of its consumers from its own resources while its share in power generation has gone down to 19% with commissioning of new plants under the private sector.

KD Chaudhry, CMD, PSPCL, said that the Punjab government has referred back the proposal with queries related to financial mode. “The PSPCL has already worked out financial model and reply would be submitted to the government next week. We are committed to the project and it would get nod very soon,“ he said.

However, PSEBEA smells a rat in the government move, saying it is meant to delay the project and some bureaucrats are playing into the hands of private players.

As per the proposal of PSPCL management, not a single penny is to be invested by the state government in this project.
Power Finance Corporation will finance the project with minor share of PSPCL. “Still some bureaucrats, who are puppets in the hands of private companies, are trying to mislead the political leadership that the project may put financial burden on the state or the corporation beyond its capacity,“ said PSEBEA president HS Bedi. He said that total dependence on private sector would ruin the financial health of PSPCL.

He said that the association has decided to soon issue a white paper on the policy of the Punjab government to handover all its upcoming power plants to private sector that too in a non-transparent manner.