Punjab govt to renegotiate power purchase agreements with private players

Amid mounting criticism over electricity charges, Punjab Chief Minister Amarinder Singh on Monday said his government will renegotiate power purchase agreements with private players. While warning the private firms against "messing with state finances", the CM blamed the previous SAD-BJP government for the agreements, saying these were signed by them to "defraud" the state and its people.

"Chief Minister Amarinder Singh on Monday said his government would renegotiate the power purchase agreements (PPAs), which the erstwhile Akali government had signed, to defraud the state and its people," a government statement said.

Given the shortfall in production by state-owned power plants in Lehra Mohabbat and Ropar, the CM said his government would work around the existing arrangements with the private players to make power affordable while ensuring that the peak demand of 13,000 MW was effectively met. The Aam Aadmi Party (AAP) had planned to raise this issue in the budget session starting February 20.

The Shiromani Akali Dal (SAD) too had sought an independent probe into the matter, alleging that the state extended "undue benefits" of Rs 2,500 crore to private power plants. The SAD had accused the state government of "deliberate laxity" in pursuing disputes involving Rs 2,500 crore on account of coal washing charges.

Through the coal washing process, impurities like ash, soil, rock are removed from coal. Due to these charges, power rates in Punjab were increased by 36 paise a unit from January 1 for domestic consumers. The CM had earlier said that his government would bring a white paper in the state assembly's monsoon session to expose the "fraud committed" by the Akalis.

At a meeting of MPs and MLAs last month, Congress Rajya Sabha member MP Partap Singh Bajwa had asked the CM to revisit the power purchase agreements signed by the previous SAD-BJP government and demanded a white paper in the assembly on the issue.