The Government of Punjab has approved the closure of inefficient units at Bathinda and Ropar coal-fired power plants with effect from 1 Jan 2018.
The decision was taken in line with the CEA’s (Central Electricity Authority) guideline to retire inefficient and economically unviable plants for more than 25 years.
Accordingly, the Punjab government has decided to shut down all units of Guru Nanak Dev Thermal Power Station (GNDTPS) at Bathinda and Unit-I &II (2 X 210 MW) of Guru Govind Singh Super Thermal Power Station (GGSSTPS) with immediate effect from 1 Jan’18.
All the units of GNDTPS had been in operation for nearly four decades, while Unit-I & II of GGSSTPS, has completed 33 years.
Reason for Closure of the Power units:
The total installed capacity of coal-fired power plants located in Punjab is 6540 MW, as per the data provided by Power Ministry.
Out of which state run power plants of Punjab are: Guru Nanak Dev Thermal Power Station (GNDTPS), Guru Govind Singh Super Thermal Power Station (GGSSTPS) and Guru Hargovind Thermal Power Station (GHTPS), accounting to 2620 MW. While the remaining installed capacity of 3920 MW is of private power producers.
| Plant Name | Operator | Sector | Unit Wise Capacity |
| Guru Govind Singh Super Thermal Power Station | PSPCL | State | 1260(6X210) |
| Guru HarGovind Thermal Power Station | PSPCL | State | 920(2X210,2X250) |
| Guru Nanak Dev Thermal Power Station | PSPCL | State | 440(4X110) |
| Goindwal Sahib Thermal Power Project | GVK Industries | Private | 540(2X270) |
| Rajpura Thermal Power Project | L&T | Private | 1400(2X700) |
| Talwadi Sabo Thermal Power Project | Vedanta | Private | 1980(3X660) |
Source: CEA
Quantity in MW
The prime reason for the closing of the state-run units was the high power generating cost. The state –run units were built on sub-critical technology, are less fuel efficient than the super critical technology on which the rest of the Independent power plants in the state are build.
Average fuel cost of private plants at Rajpura, Talwandi Sabo and Goindwal Sahib is calculated INR 2.29, INR 2.77 and INR 2.97 per unit, respectively, whereas fuel cost of state-owned plants, namely, GNDTPS, GGSSTPS and GHTPS is Rs 3.62, Rs 3.82 and Rs 3.60 per unit, respectively.
Thus due to higher fuel costs, the utilisation of the state-run plants remains low.
Impact of Closing of the Power Units:
Punjab has been depended on private power plants for catering the energy requirements, as the state government has totally ignored capacity addition in state sector. In the meantime, three supercritical power plants had been executed in the private sector in recent years.
Punjab State Power Corporation Ltd (PSPCL) pay fix charges to private power producers even when the power is not utilised, and this cost is passed on to the customers in the form of electricity tariff.
With the energy demand steadily rising in Punjab, the closure of power units would only add to the sufferings of the customers in the state.

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