Farmer’s agitation bleeding the state’s power sector red
Bureau/ royalpatiala.in/ Patiala
Besides, causing huge financial losses to the state, the ongoing farmers’ agitation in Punjab is all set to put farmers in the spot during the next paddy sowing season as the state will be forced to impose several restrictions due to shortage of power and water.
According to the power experts, due to the ongoing protest, the power generation has already taken a hit and the PSPCL is unable to bank any power with the southern states which is done every year.
The power banked with the southern states during the winters is returned to Punjab during the peak paddy season at no extra cost. The experts say this power is essential to maintain uninterrupted power supply during paddy plantation when the demand goes up to 13500 MW.
Last year the PSPCL had banked 1300 MW of power during October to March, but as this is not the case during the current fiscal, the PSPCL will be forced to procure 3200 MU at increased rates from the exchange to meet the demand during the next peak paddy season. It has been calculated that this will dent the state finances by Rs 160 crore.
The current situation has also forced the PSPCL to run its hydro plants at full capacity, which is fast depleting the water reserves in the dams. As the paddy plantation begins before the onset of monsoons, there is an apprehension that depleted water reserves will return to haunt the farmers during the paddy plantation next year when there will be not enough water for surface irrigation.
As per official records, last year the state had a potential generation capacity of 4382 MUs, but this year the state has already fallen short by 600 MU (3789 MU).
The situation is causing a huge financial stress to PSPCL which has already taken a Rs 3200 crore hit due to the lockdown imposed due to COVID crisis.
Till now the PSPCL has been able to meet the power demand of the state by procuring power from various sources including the state-owned thermals and the IPPs. The PSPCL has purchased 1450 MU from own thermal plants, 7380 MU from the IPPs and the rest of the power demand was sourced through hydro, solar and by purchasing power from outside the state to supply 9300 MUs to the state consumers.
The PSPCL, which is bound by the merit order despatch and scheduled power from different sources, has been paying an average variable cost for Rs 4.10 per unit for the power generated at state-owned thermal power plants and Rs 3.18 per unit from other sources.
Currently, PSPCL is constrained to carry out load shedding in various areas due to non-availability of sufficient power in the grid as well as low depleted coal stocks at the thermal power plants.
Punjab CM has also said in the state assembly that there is insufficient liquidity with PSPCL to buy power from outside the state as bringing in power from outside the state incurs an additional cost of Rs 12.25 for every unit overdrawn from the northern grid and also unscheduled interchange charges of Rs 8.73 a unit in addition to the actual cost of power purchased pushes up the cost of power.
To buy power from the sources outside the state the PSPCL has to pay in advance, on daily basis, while in case of sources within the state, power corporation has a long rope to make the payments.
According to the power experts, operating thermal power plants within the state is also essential for maintaining grid stability and keeping the voltage at the substations under control and the state cannot sustain power supply without generating power within the state.
A prolonged protest by the farmers will not only further deteriorate the situation for the PSPCL, but it is also impacting the state industry which has already started losing foreign orders as they have been unable to supply the goods due to suspended railway traffic. It will ultimately impact the farming community in the state as they will be unable to get uninterrupted water during the next paddy season.
October 27,2020
