Problem for Punjab State Power Corporation Limited (PSPCL)

Context: Shut thermal plants are creating a problem for Punjab State Power Corporation Limited (PSPCL).

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The demand for power in the winters gets reduced nationwide.
In this scenario, PSPCL has to shut all the units of its thermal power plants.
Rather, it seeks to buy power from the private entities to meet the power demand.
The power demand is laying between 5500 MW and 6000 MW; but during the night time, the demand may drop to 3000 MW.
The per-unit production cost of power in state-owned thermal power plants is ₹ 3.80.
Whereas the cost of power from private players is around ₹ 3. 14 to ₹ 3.66 per unit.
The per-unit cost which could be getting by selling the state thermal plants’ power would be around ₹ 3.10, which cannot cover the costs.
The purchase power agreements with the private players, due to which they are getting undue profits.
Also, as per the directive of the Supreme Court, washing charges of ₹2800 crore are to be paid to Talwandi sabo and Rajpura Thermal power plants.
So, these costs are big trouble for the state government.
In the case of non-purchase of the committed amount of power, the fixed cost has to be paid.

Thermal power plants in Punjab

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