The Congress government will review the power purchase agreements between the Punjab State Power Corporation Limited (PSPCL) and private players involved in electricity generation in the state.
“These agreements, signed during the tenure of the previous government, are against the state’s interests. These will be reworked to Punjab’s advantage. We are also revisiting the power policy,” says Power and Irrigation Minister Rana Gurjeet Singh.
In the run-up to the elections, the Congress had accused the PSPCL of extending undue benefits to the tune of Rs 7,500 crore to private players, allowing them to raise their variable costs arbitrarily, thus making power expensive for the consumers.
“Economic sense says that privatisation leads to competitiveness, which the existing agreements do not encourage,” he says. According to Rana Gurjeet, the incentives and facilities provided to the industry should eventually benefit the state. Read More…