Panjab Govt. Buys Thermal Plant Near Eco-Sensitive Wetlands

Panjab government has bought the private GVK Power-owned Goindwal Sahib Thermal Power Plant for $130M. Panjab CM Bhagwant Mann said this was the cheapest buy in the country and added that for the first time, the government had cleared all dues to Punjab State Power Corporation Limited (PSPCL), despite the government paying a huge subsidy of $2,166M per year. The PSPCL office said they would save $36M per annum after the acquisition of the power plant. CM Mann said the 540-MW thermal plant will be named after Guru Amardas. The Competition Commission of India (CCI) approved this purchase by the Panjab government. Until the deal was done, there were 17 litigation cases between GVK and the PSPCL. All these cases will end by virtue of the acquisition. When GVK Power filed for corporate insolvency, they claimed the plant price at $945M. The National Company Law Tribunal (NCLT) approved the price at $795M. Out of the initial 11 bidders, the creditors approved just one — the Panjab government. The creditors have lost $660M in this deal. Due to lack of coal supplies, the plant has been running at just 34% of its capacity. That should improve if the plant is linked to the Panjab government-owned Pachhwara coal mines in Jharkhand. The environmental concern is the location of the plant next to the Harike wetlands known for migratory birds and river dolphins. The waste water from the plant will pollute the confluence of the rivers Satluj and Beas.