Punjab government likely to scrap five PPAs

The Punjab government has begun the process to terminate/re-negotiate five power purchase agreements (PPAs) supplying costly power to the state.

Two PPAs were signed with GVK Power and Damodar Valley Corporation by the previous government. While the former is reportedly supplying power at Rs 8 per unit, the latter is supplying at Rs 4.60 per unit. Punjab State Power Corporation Limited has also filed petitions with Punjab State Electricity Regulatory Commission for scrapping three other PPAs with Anta, Auraiya and Dadri thermal power plants of NTPC. The state is reportedly paying fixed charges Rs 1.50 billion per annum to NTPC under existing PPAs with these plants.

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