Dispute over 150 MW purchase for 25 years led to suspension, sacking of Punjab power dept officers

Although the government kept mum over Sinha’s transfer, Harjit Singh’s termination order pointed to “high fuel cost” at state-run plants compared to private thermal units.

Officials, on condition of anonymity, said power was to be purchased at Rs 5.13 to Rs 5.14 per unit, while solar power is available at Rs 3 per unit.

Officials said two agreements for 150 MW (100 and 50 MW each) were signed in September, but the government did not give its approval “as these agreements, approved by PSPCL engineers’ committee and board of directors, were priced at Rs 5.13 to Rs 5.14 per unit, significantly higher than the Rs 3 per unit of solar power”.

Technocrats, however, termed it “comparing apples to oranges”.

A senior technocrat said the two agreements were not expensive and could not be compared to solar power, because they were hybrid power — solar energy during the day, wind at night, and batteries 24X7.

“Solar power is only available during the day. It is not available at night. Also, it is subject to sunny days. That is why the agreements were for hybrid power so that this could be supplied 24X7. The companies were bound to provide 70 per cent of power every day, irrespective of weather conditions. Solar is an infirm power. It cannot sustain 24X7 seven days a week. Comparing the price of every unit of solar power and hybrid power is like comparing apples to oranges. It is incorrect to claim that solar power is cheaper because solar power is only available during the day, while peak power load occurs during the four hours in the evening, when this power is unavailable. Therefore, the company would have provided us with wind power or batteries,” he said.

He further said that there was a provision for a penalty equal to one-and-a-half times the electricity price, and failure to meet its minimum annual quota would result in a penalty of three times the annual price.

Technocrats said these agreements were made through a central government agency, and the Solar Energy Corporation of India had issued these tenders. The government was given 90 days to reach an agreement. A committee of six chief engineers and two chief engineer-level accounts department officials, the Long Term Power Purchase Committee and the PSPCL Board of Directors (BoD) approved the deals.

Before the agreements were to be sent to the Punjab State Electricity Regulatory Commission for final approval, the government withheld them, citing that solar power was cheaper. “After the minutes were approved, the BoD also approved filing the requisite petition (for approval) before the Punjab State Electricity Regulatory Commission (PSERC). The BoD is authorised to take these decisions, but the government did not allow technocrats to file the petition,” the senior technocrat said.

Power Department engineers are protesting the suspension and termination orders. They held rallies at the gates of Ropar and Lehra Mohabbat thermal plants.

It is learnt that Punjab’s power demand has been growing by 800 MW every year, but the government has failed to create new sources of power generation. With agreements for additional power not being signed, the state may face a shortage of power.

Power Minister Sanjeev Arora was, however, not available for a comment.

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