Punjab News: The 540 MegaWatt private thermal power plant in Goindwal Sahib has just one bidder, Punjab State Power Corporation Limited (PSPCL), and this opens the door for the state government to purchase the private thermal plant. According to top PSPCL officials, the bids for the purchase of this private power plant were opened today by the Resolution Professional appointed by the National Company Law Tribunal (NCLT).
Acquisition of Private Thermal Plant
According to Chief Minister Bhagwant Mann, the state government is prepared to purchase the private thermal plant. In order to increase our capacity for generating electricity, he stated, “Previous governments sold government properties, but we are buying a private thermal power plant.” It is known that Vedanta and Jindal Power, two of the 12 businesses who had expressed interest in purchasing the plant, were eager to complete the transaction. However, the ongoing litigation between the original thermal plant operator GvK Power and PSPCL over its overall capital investment in the plant and in obtaining compensation for the coal it used to operate the station’s two units proven to be a deterrent.
PSPCL’s Bid Under Scrutiny by Committee of Creditors
The bid presented by PSPCL will now be evaluated by the Committee of Creditors (CoC) made up of the 12 banks that initially provided funding for the plant owned by GvK Power, a senior government official informed The Tribune. A senior officer said, “A 66 per cent vote in favour is needed from members of the CoC to decide on the bid in our favour. The state power utility will then be called by the committee for negotiations within a week to 10 days after evaluation of the bid.” The private business that runs the plant, GvK Power, filed for corporate bankruptcy last year. According to state government officials, the plant will be powered by coal from the state’s own coal mine in Pachhwara once the state has seized control of it. A senior officer claimed that the agreement would put an end to all legal disputes with the thermal plant, which is already operating at full capacity.
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