Jalkheri Power Plant reverse bidding brings down biomass rates: Er. B.S. Sran CMD PSPCL



PRESS NOTE, PATIALA, December 28, 2018

Earlier this year, PSPCL had decided to lease out idle Jalkheri Power Plant of 1×10 MW capacity on renovate, Operate and Transfer (ROT) basis for a period of 20 years. This Biomass fuel based power plant of 1×10 MW capacity constructed by erstwhile PSEB at village Jalkheri, District Fatehgarh Sahib was commissioned in June, 1992. The plant remained operational till July, 1995. Then, the plant was given on lease to M/s. Jalkheri Power Plant Ltd. (JPPL) in July 2001, who commissioned the plant in July 2002 and kept the plant operational till September, 2007. Then in 2012, efforts were made to get the project re-started by giving a licence to the private developer to run the plant for a specific period by giving it on lease. Even then no response was received. The plant is lying idle since September, 2007.

The technical bid of tender to lease out Jalkheri Power Plant of 1×10 MW capacity on renovate, Operate and Transfer (ROT) basis was opened on November 22, 2018 in which three no. firms has participated. Er. Baldev Singh Sran, CMD PSPCL has disclosed that due to transparent online tendering process and involvement of PSPCL personnel, on December 27, 2018, during Reverse Auction (RA), tariff rate of Rs. 5.84/unit is quoted by one of the participant bidder. Whereas, as per order dated 09.09.2018 of PSERC in Petition no. 23/2018, generic tariff for Biomass power projects (RE technologies) for FY 2018-19 is about Rs. 8.25 to 8.36 per unit for the projects that are tendered by PEDA. He said that there will be benefit of Rs. 13 crore per annum i.e. Rs. 260 crores over the period of 20 years on this account.It is pertinent to mention here that in this tender rates of L-1 bidder before reverse auction were Rs. 7.25/kWh and after reverse auction L-1 rates are Rs. 5.84/kWh implying a cost saving of Rs. 8 crore per annum i.e. Rs. 160 crore over the period of 20 years, due to reverse auction alone.

The tender is being processed and the work shall be allotted to the L-1 bidder in the due course of time. Er. Sran CMD, PSPCL said that once the work of renovation is allotted to the L-1 Bidder, plant will become operational in about 27 months from the date of signing the Lease. CMD said that once Jalkheri Power Plant becomes operational, not only about 80,000 MT per annum of rice straw shall be consumed for producing electricity, but this will also save environment from getting polluted which otherwise is polluted due to burning of rice straw by farmers. He also said that this project will also help in meeting with Renewable Purchase Obligations (RPO) requirements of PSPCL. He further added that this plant will generate 56.94 million units per annum considering a PLF of 65%.

Issued by, Dy.Secy.P.R,PSPCL,Patiala

Press Note no 40 dtaed Dec.28,2018