Local coal, hydel power turned PSPCL into profit-making unit
Aman Sood
Patiala, January 1
Year 2023 proved to be a better year for Punjab State Power Corporation Limited (PSPCL) in terms of power production and also ensuring that it earns profit.
The peak demand for electricity during the paddy season was 15,325 MW this year. PSPCL also set a new record of supplying 3,435.4 lakh units of power supply on a single day.
PSPCL has earned a profit of Rs 564 crore during the peak season of the year ending October, against a loss of Rs 1,880 crore during the corresponding period last year. This was possible following the coal supply from the captive Pachhwara coal mines, which not only improved the thermal generation at Ropar and Lehra Mohabbat, but also turned loss-making PSPCL into a profit-making company.
PSPCL has earned more than Rs 560 crore by sale of power through exchange on day ahead / real-time basis in the current financial year.
Further, the increase in water level following heavy rainfall in the catchment areas has proved a boon to PSPCL as it is operating all the four units round the clock for the past 10 days. By running all the four units of 150 MW each, it is not only avoiding possible spillage but also generating maximum power.
PSPCL has been able to sell surplus power due to sufficient generation at Ropar and Lehra Mohabbat after the coal stocks increased with Pachhwara coal mine supply. The increase in power generation by sufficient coal stock build-up with the help of Pachhwara coal mine helped increase its own generation and led to less power purchase through exchange. Last year, power purchase from the open exchange was 4,773 million units. Power purchase came down to 2,480 million units this year.
The low point of 2023 was the clearance of government pending bills. Punjab government departments continue to default on pending payments. PSPCL launched a one-time settlement (OTS) scheme to recover pending payments and extended the scheme twice to December 26 for those consumers who failed to pay their pending bills.
Out of Rs 4,775 crore, Rs 2,534 crore is still outstanding against various government departments. Main defaulters are the Water Supply and Sanitation Department (Rs 1,124 crore), Local Bodies Department (Rs 881 crore), Rural Development and Panchayats Department (Rs 286 crore) and the Health Department (Rs 125 crore). But the OTS has failed to generate enough interest in government departments.
This year, the Central Electricity Regulatory Commission (CERC) lowered the price cap for power purchases through exchanges from April 4 from Rs 12 to Rs 10 per unit for all contracts. “This also gave much-needed relief to discoms during peak season for purchasing power on short term or day ahead basis,” said All-India Power Engineers Federation (AIPEF) spokesperson VK Gupta.
Punjab Government submitted a bid for acquiring Goindwal Sahib thermal plant and it was the only bidder. The Punjab State Electricity Regulatory Commission (PSERC) in its tariff order for 2023-24 estimated a total subsidy of Rs 18,714.51 crore. This included Rs 8,809 crore for agricultural power, Rs 5,886 crore for free 300 units of power to domestic consumers and Rs 1,427 crore for those consumers with load up to 7 KW at Rs 2.50 per unit.
“The total domestic power subsidy for this fiscal was Rs 7,313 crore. But with an average increase of Rs 125 crore per month, it will now be Rs 8,813 crore. In comparison, the agriculture sector subsidy is Rs 8,809 crore,” said VK Gupta.
