New Year’s gift: AAP govt buys private thermal plants
The Punjab government, under the leadership of Chief Minister Bhagwant Mann, has presented a New Year’s gift to Punjabis by acquiring a private thermal plant at Goindwal Sahib. In a shift away from the country’s prevailing reliance on the private sector, Punjab has made a significant move towards the public sector.
The purchase of the 540 MW GVK Goindwal Thermal Plant for Rs 1,080 crore was sanctioned by the National Company Law Tribunal in Hyderabad on December 22. This acquisition marks a pivotal turn in the expensive power agreements previously made with private thermal power plants by the Punjab government.
With this transition of the Goindwal Thermal plant to the public sector, the people of Punjab are poised to benefit from more affordable electricity. Reports suggest that the AAP government conducted a clandestine operation spanning approximately six months to procure this private thermal plant, with about ten companies vying for its acquisition.
The Punjab Cabinet, on June 10, 2023, approved the purchase of the Goindwal Thermal plant, following an examination by a cabinet sub-committee focused on its financial and legal aspects. Subsequently, Powercom filed a financial bid for the purchase in June after the government’s approval. Powercom’s board of directors has already endorsed the acquisition, given that the company managing the thermal plant has gone bankrupt.
This group had initially borrowed from nearly a dozen banks for the thermal plant, and the outstanding debt has now soared to approximately Rs 6600 crore.