Delay In Punjab Power Projects Work Criticised

In its recent background paper on the power situation in Punjab, the chamber has criticised the state for the slow progress in major power projects like the Ranjit Sagar Dam, Shahpur Kandi project, Goindwal thermal station and the Bathinda fuel-based power station.

Commenting on the slow implementation of the 600-mw Ranjit Sagar Dam, the chamber has pointed out that the first two units to generate 500 mw of power were scheduled to be commissioned in 1996-97, but as per latest reports, the project will take another year for completion.

On the 168-mw Shahpur Kandi project, the chamber said that the Punjab government had, so far, failed to award the contract. The contract was to be awarded by the end of June 1996 based on international bidding.

 

The chamber has also criticised the government for the delay in implementing the 500-mw Goindwal thermal station in Amritsar district.

The project is proposed to be implemented with private sector participation. The chamber is critical of the government over the fate of the Bhatinda power station. The chamber has pointed out that while the memorandum of understanding was signed by the Punjab State Electricity Board and the IOC in January this year, no commercial agreement has been signed so far for time-bound implementastion of the project.

The chamber has suggested that for the implementation of the projects, in both private and joint sectors, the PSEB should invite international bids permitting the state government to directly clear projects involving investments up to Rs. 1000 crores. The chamber has pointed out that while "some forward looking" states like Andhra Pradesh, Rajasthan and Maharashtra have been successful to tap private sector investment in the power sector, Punjab has not taken any transparent concrete measures so far.

The chamber has suggested the following measures:

Since there is no policy decision regarding the supply of liquid fuel for small plants, there is need to tie-up fuel supply for such projects. A model PPA should be finalised which is bankable.

Power plants with investments up to Rs 50 crore require clearance from the ministry of forests and environment.

The state government should be given powers to give this clearance, as power projects involving investments up to Rs 1,000 crore can now be cleared at the state level.