Project Information of Talwandi Sabo Thermal Power Project , Rajpura Thermal Power Project and Gidderbaha Thermal Power Project.
Power Scenario in Punjab: Punjab’s installed capacity at the end of the 10th plan is 6088 MW including own generation, share from Bhakra Beas Management Board (BBMB) and various central sector projects. During 11th plan two thermal generation projects namely 500 MW Lehra Mohabat Stage-II and 540 MW Goindwal Sahib Thermal Power Project are expected to be commissioned. In addition to this, 263 MW Hydel Generation projects are also expected to be commissioned during the 11th Plan. Thus, the total generation is expected to be about 7451 MW at the end of 11th plan against the expected peak demand of 11000 MW during the year 2011-12. Therefore, Punjab Govt. has planned to develop three Thermal Power Plants at Rajpura , Talwandi Sabo and Gidderbaha having capacity of 1320 MW, 1980 MW and 2640 MW respectively on BOO basis. In addition to this long term Power Purchase Agreements are being done for purchase of power. Inspite of this there will be shortage of power to the tune of about 1500 MW ending the 11th Plan. Section 63 of the Electricity Act, 2003 provides that Regulatory Commission shall adopt the tariff determined through transparent process of bidding in accordance with the guidelines issued by Central Government. This aims at moving away from cost- plus support for tariff determination and it is expected to further encourage private sector investment. Guidelines for competitive bidding for determination of tariff for procurement of power by distribution licensees were issued on 19th January 2005. The policy stipulates that all future power needs to be procured competitively by distribution licensees except in cases of expansion of existing projects and where Regulators will need to resort to tariff determination based norms.
Recognizing the above facts that cheaper power can be procured by development of power plants through tariff based competitive bidding. Government of Punjab and PSEB have identified sites for three coal based Thermal Power Projects at Talwandi Sabo , Rajpura & Gidderbaha to be developed on Build, Own and Operate (BOO)basis. These TPPs will meet power needs of Punjab to a great extent. The land of Talwandi Sabo Power Project has already been acquired and project handed over to Developer M/s Sterlite Energy Limited, Mumbai.
The land for the Rajpura & Gidderbaha Project shall be acquired by SPVs namely Nabha Power Ltd. (NPL) and Gidderbaha Power Ltd (GPL) wholly owned companies of PSEB registered under companies Act 1956. The land shall be handed over to the selected developers after issue of Letter of Intent (LOI) and before the award of the Project.
PUNJAB STATE ELECTRICITY BOARD:
Punjab State Electricity Board was constituted on the 1st February, 1959 under section (5) (1) of the Electricity (Supply) Act, 1948. Subsequently, the erstwhile State of Punjab was re-organized under Punjab Re-organization Act, 1966 and the Board in its present form came into existence with effect from the first day of May, 1967. Accordingly the Board is charged with the general duty of promoting the coordinated development of generation, supply and distribution of electricity within the State in most efficient and economical manner.
For development of Rajpura and Gidderbaha power projects, in order to enhance investors’ confidence, reduce risk perception and good response through competitive bidding, two Special Purpose Vehicles (SPVs) have been setup as wholly owned companies of PSEB to facilitate tie up of inputs, linkages and clearances for these projects. These companies will undertake preliminary studies and obtain necessary clearances and tie ups including for coal, water, acquiring of land, power selling arrangements with PSEB, the sole procurer from these projects, before award of the projects to successful bidders by way of selection of developers through tariff based Competitive Bidding. The SPVs shall also obtain necessary environmental clearances.
These SPVs are registered under Company’s Act, 1956 as :-
- Nabha Power Ltd. (NPL) for Rajpura Thermal Power Project.
- Gidderbaha Power Ltd.(GPL) for Gidderbaha Thermal Power Project.
These SPVs shall be transferred to the successful bidders at the end of the bidding process, on payment of development costs incurred by each SPV.
Role of SPVs
The role of SPVs is to facilitate following activities:
- To undertake all necessary studies and preparation of Project Report.
- To obtain coal linkages from Ministry of Coal
- To get allocation of water from State Irrigation Department.
- To obtain various approvals and statutory clearances.
- To acquire land for the Project.
Payment security Mechanism has been stipulated by PSEB for off take of power from these projects in the following manner:
- Revolving letter of credit (LC) by distribution licensee (PSEB).
- Escrow account establishing irrevocable claims on receivables of PSEB.
- In case of default, third party sale to other procurers or interstate power trading or direct supply to HT consumers as per provision of Electricity Act, 2003.
Power take off
Entire power generated from each project shall be taken off by PSEB.
Location and approach
A) Rajpura Thermal Power Project
The site is located near Rajpura town in Patiala District of Punjab State. Nearest Railway station is Rajpura which is about 8 Kms and nearest Airport is Chandigarh which is about 50 Kms. Nearest National Highway (NH -1) (Rajpura) is about 6 Kms away from Project site.
About 1100 acres of land has been identified by State Govt. which is mostly private cultivated land with some open scrub area.
Water is proposed to be drawn from Bakara canal, which is located about 6 Kms away from site.
B) Talwandi Sabo Thermal Power Project
Location and approach
This site is located in Mansa district of Punjab State and is about 65 kms. from Bhatinda. Nearest Railway station is Sada Singhwala which is about 15 Kms. away from Bhatinda-Jakhar line and nearest Airport is Chandigarh which is about 200 Kms.
About 2100 acres of land for main plant, ash dyke and township has been identified by the State.
Water is proposed to be drawn for the project from Kotla Branch which is about20 Kms away from site.
C) Gidderbaha Thermal Power Project :
The site is located in Muktsar District of Punjab and is about 5 Kms.from Gidderbaha on NH -15( Bathinda-Malout), Nearest Railway Station is Fakarsar which is 4 Kms.away and nearest Airport in Chandigarh about 250 Kms.
Land Availability :-
About 2432 acres of land for main Plant, ash dike and Township has been identified by the State.
Water Availability :-
Water is proposed to be drawn for the Project from Sirhind Feeder, which is adjacent to the Plant site.