Rajpura power plant: PSEB asks state govt

Sources say the Board recommended that the Punjab government renegotiate the price for the thermal power with Lanco Infratech, failing which fresh bids may have to be invited.

Incidentally, Lanco Infratech turned out to be the lone bidder for the thermal power plant, after at least 25 bidders initially evinced interest in the plant. The coal-based 1,320 MW power plant proposed at Rajpura will be awarded to a developer on a build, own and operate basis, through tariff-based international competitive bidding.

This is the first initiative of the Punjab government to encourage private investment in the power sector and also endeavours to promote public-private participation in the field of power generation.

The PSEB today decided to request the Punjab government to form a committee, preferably headed by the state chief secretary, to negotiate the bid with Lanco for the Rajpura plant and bring it down.

Sources say the PSEB also discussed that in case the bid was not renegotiated, it may not award the plant to Lanco and may go in for fresh bids.

It may be recalled that amid the global meltdown and the current economic crisis, only one company finally came out to bid for the 1,320-MW thermal power of PSEB at Rajpura. All major players have put their expansion plans on hold in the current crisis.

Sources add that it was also discussed at the Board meeting that in case the PSEB did not find a suitable bidder for its Rajpura plant, it may set up the plant internally on EPC (engineers procurement contribution) basis. This view was aired by engineers within the PSEB, who are not in favour of privatising the power plant.

The PSEB officials also informed the modalities and other details to the new Finance Secretary S C Aggarwal. Among others present in today’s Board meet included PSEB chairman YS Ratra and chairman and managing director of the Nabha SPL (Nabha Special Purpose Vehicle) formed for the Rajpura power plant.