Punjab Inks Pact to Buy 1,200 MW Power from SJVN, Will Slash Electricity Bills, Says CM Mann – News18

Electricity supply to Punjab is expected to get a boost with the Bhagwant Mann government on Thursday announcing a power purchase agreement with Satluj Jal Vidyut Nigam (SJVN). This is likely to ensure cheaper power supply within a year and a half, according to the administration.

Once the supply begins, consumers in the state are expected to get an uninterrupted and cheaper power supply.

Chief minister Mann while addressing the media in Chandigarh said that it was the biggest memorandum of understanding (MoU) signed by government-run Punjab State Power Corporation Ltd (PSPCL) with SJVN, a subsidiary of Bhakra Beas Management Board and a leading renewable energy firm. The agreement was for 1,200 MW, he said.

Mann said while none of the pacts signed during the SAD-BJP regime in the state from 2007-17 were below Rs 7 per unit, the government would now be paying a maximum of Rs 2.75 per unit. The benefit of the low-cost power purchase agreement, which was the “cheapest to date”, would be passed on to consumers, he said.

The CM said SJVN Green Energy Limited had agreed to supply 1,000 MW power at the rate of Rs 2.53 per unit from Bikaner (Rajasthan) and Bhuj (Gujarat). The remaining 200 MW would be supplied by its Hoshiarpur plant at Rs 2.75 per unit.

“The state stands to gain at least Rs 431 crore out of the MoU. There will be no increase in rates during the pact duration of 25 years,” he said.

To further promote clean energy and provide maximum power to agricultural tubewell, the PSPCL had floated more tenders to procure 2,500 MW solar power, the CM said.

He alleged that the SAD-BJP and Congress governments had hugely benefited private players in the earlier power pacts. “A majority of these were priced at over Rs 7 per unit,” he said.