Biomass power plant re-commissioned in Punjab

New Delhi: Punjab Power Minister Harbhajan Singh on Monday announced recommissioning of the 10 MW biomass power plant at village Jalkheri, Fatehgarh Sahib district.

Designed to generate electricity by using 100 percent paddy straw, the plant will consume around one lakh tonne of the crop residue annually, which will help the state government to curb the problem of stubble burning over nearly 50,000 acres of land.

PSU Watch is now on Whatsapp Channels. Click here to join

"This initiative not only increases our green energy capacity and provides employment but also offers a solution to the persistent problem of stubble burning. It aligns perfectly with our government's commitment to energy security, environmental protection, and economic growth," said the minister in a statement.

The 10 MW biomass power plant at Jalkheri was originally commissioned in June 1992. It remained operational till July 1995 after which it was given on lease to Jalkheri Power Plant Ltd (JPPL) in July 2001.

The plant was recommissioned in July 2002 and remained operational till September 2007.

In 2012, efforts were made to restart the project by giving a licence to a private developer to run it for a specific period by giving it on lease. In 2018, the plant was re-tendered to be leased out, it said.

Now the renovated plant has been recommissioned on June 21 and officially commenced operations, it said.

It utilises advanced Denmark technology boilers and is designed to generate electricity using 100 percent paddy straw.

This biomass plant will consume approximately one lakh tonne of paddy straw annually that will help the state government to curb the problem of stubble burning in nearly 50,000 acres in Punjab.

This initiative will provide direct and indirect employment to 400-500 individuals, fostering economic growth in the region, it said.

The term of Power Purchase Agreement (PPA) for this plant is 20 years starting June 21, after which the facility will be transferred to Punjab State Power Corporation Ltd (PSPCL).

In the recent tendering process, the final quoted tariff was found Rs 5.84 per unit after reverse bidding, which in fact has further been reduced by Rs 0.07 per unit saving Rs 10 crore over the lease period.

The lease agreement and power purchase agreement were signed with the SAEL in 2019 and the plant was handed over to the SAEL for renovation in the same year.

The power generated from this plant shall be purchased by power utility Punjab State Power Corporation Ltd at a negotiated tariff of Rs 5.77 per unit.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on  Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)