Dr. Verka explores possibility of tariff reduction in Power Purchase Agreements

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Chandigarh, 7 December 2021, (Press Ki Taquat Bureau)-

New and Renewable Energy Minister Dr. Raj Kumar Verka has explored the possibility of tariff reduction in the existing Power Purchase Agreements through mutual agreement with solar and biomass power project developers in the state.

In the meeting with solar and biomass power project developers at Punjab Bhawan today he informed the project developers that as the interstate and corporate taxes have reduced. Therefore the project developers should look into the ways and means to reduce the tariff which benefit Govt. and PSPCL which shall further lead to reduction of the tariff of the general public of the State of Punjab.

Dr. Verka stated that he is looking forward to friendly and healthy relationship and they should come forward and invest more in the State. However they should give their suggestions and any other issue they are facing and the department shall form a committee to find ways and means the methodology after looking into their suggestions to explore the possibility of amicable solution.  Dr. Verka said that further meeting shall be held by a Sub-Committee constituted for this purpose with various solar and biomass power project developers and only amicable solution which is acceptable both Govt. and private developers/investors shall be taken. He also asked all companies to spend their CSR money in Punjab.

Various project developers from solar companies like Welspun Power, Azur Power,  Ecko Energy, International Earth Solar Pvt. Ltd., Allianz Eco Power Ltd., etc.  were present in the meeting. The biomass power project developers stated that all of them are using paddy straw and biomass in power projects in the State of Punjab and together among them among themselves handling/utilizing one million ton paddy straw.  The cost of handling, shipping, storage and loss due to whether issues like rain and degradation in the stores leads to loss including fire incidences in the stores of paddy straw and biomass.  The biomass power plants are providing lot of jobs in the rural area of the State and also provide environment benefits otherwise it was burn by the farmers.

The meeting was attended by CMD, PSPCL, Sh.Venu Prasad, Mr. Navjot Pal Singh Randhawa, CEO PEDA, Mr .M.P.Singh, Director, PEDA, Mr. Davinder Singh, Joint Director, PEDA, Mr. R.K.Gupta, Joint Director, PEDA, Mr. Supinder Singh, Joint Director PSPCL.