The Punjab State Power Corporation signed a memorandum of understanding with Indiabulls Power for the development of 1350-mw coal fired thermal power project in the state.
KD Chaudhri, chairman cum managing director, PSPCL informed that the MoU with Indiabulls Power is for development of 1350-mw coal-fired Thermal Power Project near villages Bhupal and Harisinghwala at about 9 km from Mansa in two phases. He said the company will develop two units of 270 mw each (total 540 mw) in the first phase and 3 units of 270 mw each (total 810 mw) in the second phase.
For the purpose of development of project, a special purpose vehicle, Peona Power Development—a 100% subsidiary of India Bulls Group—has been created by the company. Chaudhri said the proposal has been made under new Power Generation Policy notified by the Punjab government on 21.06.2010 in order to facilitate accelerated addition to power generation capacity in the state so as to meet the increasing electricity demand and to achieve higher growth rates.
Chaudhri said the government through its nominated agency shall have first right but not obligation for the purchase of power up to 70% of the installed capacity from the project, at the tariff which shall be got approved from the Appropriate Electricity Regulatory Commission. PPA shall be executed between the government nominated agency and the developer initially for a period of 25 years which can be extended on mutually agreed terms and conditions.
Chaudhri added that the government shall extend incentives and benefits to the project such as 100% exemption from payment of fee and stamp duty for registration for the land, payment of change of land use charges, EDC and license and permission fee for the land under the project including residential, institutional and commercial components within power plant complex and for other facilities incidental thereto, waiver of 50% electricity duty for construction power, 100% exemption from entry tax in respect of all supplies made for setting up and trial operations of the projects etc.