PSPCL serves notice on TSPL for its failure to maintain coal stock
The TSPL is operating a 1,980 MW thermal plant in Punjab under a power purchase agreement (PPA) signed in 2008 with the PSPCL.
Chandigarh
Punjab State Power Corporation Limited (PSPCL) has served two default notices on Talwandi Sabo Power Limited (TSPL), the biggest thermal power plant in Punjab, for its repeated failure to maintain coal stock.
The notices were issued on August 12 and 16.
The TSPL is operating a 1,980 MW thermal plant in Punjab under a power purchase agreement (PPA) signed in 2008 with the PSPCL.
Due to less coal supplies, the TSPL had to shut its 660 MW unit on August 13, the PSPCL notice issued on August 16 read. To meet the peak load demand in summers, the PSPCL had shifted its coal stock to the TSPL for smooth running of the power plant. As per the Central Electricity Authority guidelines, the TSPL failed to maintain a minimum coal stock of 20 to 26 days of operation, the notice read.
“Despite repeated reminders, the TSPL has failed to maintain requisite coal stocks thus hitting power generation in the state during the current peak demand paddy season,” the notice read.
“In these circumstances, it is solely on account of reasons attributed to the TSPL that the coal situation has reached to critical situation leading to shutdown of a unit of 660 MW,” said the default notice, adding that the PSPCL is not liable to pay fixed capacity charges.
The PSPCL has asked the TSPL to take corrective measures else it will revoke clauses of the power purchase agreement and approach the power regulator against it.
On September 15, 2021, too, the PSPCL served a preliminary default notice on the TSPL alleging seller’s event of default under the power purchase agreement on account of its failure to achieve average availability of 65% of power within the non-consecutive period of 12 months in a continuous aggregate period of 36 months (Sept 2018-Aug 2021). The issue was later resolved.
Phone calls and text messages to TPSL CEO Vibhav Kumar didn’t elicit any response. However, before the PSPCL issued the default notices, the TSPL on August 9 had requested the corporation to allocate 1 lakh tonne of coal from its allocated quota to the TSPL for operation of the power plant.
