24 October, 2011

Chief Minister Parkash Singh Badal has given in-principle approval for the setting up of a 1,320-MW thermal plant in the state sector at Mukerian, Hoshiarpur. The development assumes significance since from past more than a year, engineers working with the Power Corporation and power sector experts had been criticising the government for awarding thermal power projects to private players through the MoU route in violation of the National Tariff Policy.

Notably, after the Board of Directors of the PSPCL gave their nod for setting up a thermal plant in the state sector in April this year, the PSPCL management drafted the proposal to set up a 1,320-MW thermal plant at Mukerian, Hoshiarpur. The proposal was sent to the government for approval. However, the government referred the proposal back to the PSPCL in June, asking the corporation to clarify certain points pertaining to the financial aspects of the project, particularly about the source of funding. Interestingly, the observations were made by the government despite the fact that the proposal clearly mentioned that 90 per cent of the project cost would to be borne by the Power Finance Corporation and the rest by the PSPCL.