Power Purchase Agreements: Vigilance launches fresh probe, collects record from PSPCL

Chandigarh: The Punjab Vigilance Bureau has initiated an inquiry into the ‘Power Purchase Agreements’ of thermal power plants and solar energy. Punjab state power corporation limited (PSPCL) has submitted all records related to power purchase agreements to the Vigilance. The bureau, in its pursuit, is seeking the collaboration of power experts to comprehend the technical aspects of the case.

Politicians from the SAD-BJP coalition government, who were involved in power purchase agreements with thermal power plants from 2007-17, are now under the Vigilance’s scrutiny. Notably, the Congress government led by Charanjit Singh Channi, on November 11, 2021, announced a probe by Chief Vigilance Commissioner Justice (retd) Mehtab Singh Gill into these agreements. He summoned records on December 3, 2021, but the investigation did not progress significantly. The Vigilance Bureau will now review the findings of Justice Gill’s inquiry.

The Goindwal thermal plant is exempt from thermal testing due to its acquisition by Powercom. The Vigilance will focus its examination on power purchase agreements signed with the 1980 MW Talwandi Sabo Thermal Plant and the 1400 MW Rajpura Thermal Plant.

Chief Minister Bhagwant Singh Mann has also raised concerns about solar energy agreements. Former Chief Minister Captain Amarinder Singh justified only 17 of the numerous solar power agreements signed during the coalition government, expressing doubts over the energy agreements.

The Vigilance is extending its investigation to solar power agreements, including projects involving politicians and top officials, who may face scrutiny. During the SAD-BJP coalition government, 91 solar power projects totaling 884 MW in Punjab were signed with power tariffs ranging between Rs 3.01 and Rs 8.74 per unit. In the 2020-21 Congress regime, four power agreements for 767 MW were signed between Rs 2.63 and Rs 4.50 per unit.

During the coalition government, agreements with three companies for solar energy purchase were at the rate of Rs 17.91 per unit, while one deal was signed with a company for electricity purchase at Rs 14.91 per unit.

Additionally, 22 solar power projects were signed at rates of Rs 8 or more, and 35 projects at rates of Rs 7 to 8 per unit. Powercom procured solar energy worth Rs 4,487 crore and energy worth Rs 1,928 crore from biomass projects from 2011-12 to 2020-21. The AAP government signed nine solar power purchase agreements between Rs 2.5 and Rs 3 per unit.