Huge slippage in commissioning of Talwandi Sabo’s units

Huge slippage in commissioning of Talwandi Sabo’s units
Sunday April 12, 2015

There is huge slippage of more than two years in the commission of two out of three 660 MW units of Talwandi Sabo thermal plant and even the process to impose penalty has not been initiated by Punjab State power Corporation Limited.
All the three 660 MW units of 1980 MW thermal plant were to be commissioned between August 2012 and April 2013 but only one unit has been commissioned so far. Even the first unit was commissioned after a delay of more than one year and other two units were to follow after a gap of four months. The second was tried in January this year but the attempt failed due to a fire incidence. Each unit is contracted to supply 613.8 MW of power to PSPCL
It may be added that PSTCL had completed the 400 KV transmission network in line with the scheduled commissioning schedule to evacuate the power from this thermal plant. Now this transmission system remains under used.
As per contract the firm is to pay a liquidated charges for delay in the commissioning of units and as such the firm is to pay a total of Rs. 951 crore ( 3 X 317 =951 crore) but the Punjab State Power Corporation Limited has not levied any penalty of the firm for the reasons best known to the management.
Punjab Government had claimed that with the coming up of thermal plants in private sector the consumers will be benefitted by way of reduced tariff. PSPCL in its annual revenue requirements submitted to Regulatory Commission t has been shown as Rs. 3.73 per unit as cost of supply. This cost has been worked out on the basis of use of Indian coal and in case firm blends imported coal with Indian coal cost will rise further.
Last year due to backing down of thermal unit at Talwandi Sabo the cost has escalated to Rs.3.97 per unit as PSPCL is to pay fixed charges for this. The thermal plant at Talwandi Sabo was awarded under competitive bidding and the competitive bidding rate of Rs.2.86 per unit was accepted by the PSERC as being reasonable and competitive. The cost of power procured is more than cost of generation at PSPCL’s own thermal plants.
A senior PSPCL official said that the company has been extending commissioning dates every three months and now the latest commitment is May and July . He however was not sure if the company will stick to revised schedules.


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