Punjab government orders PSPCL to cancel or revisit one-sided PPAs

Punjab government has ordered Punjab State Power Corporation Limited (PSPCL) to cancel or revisit all the one-sided power purchase agreements (PPAs) signed with private firms, which were not contractually obligated to supply power to meet the peak demand during the paddy sowing and summer season.

The state government has also directed PSPCL to revoke its PPA with Talwandi Sabo Power Limited, one of the largest private thermal plants in the state, for miserably failing to perform in the current paddy season. Further, the government has also asked the PSPCL to examine all the PPAs signed with the various independent power producers (IPPs), which were established to meet the power demand especially during paddy sowing and summer season.

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