Making its recommendations for revival of the state power sector post-Covid shutdown, the group of experts led by Montek Singh Ahluwalia has called for the privatisation of power distribution and shutting down of two thermal plants in Punjab.
The report has suggested that there is a case for experimenting with the privatisation of distribution in selected cities in the state. It would be a good way of attracting major investors and industry will benefit from lower tariff in the long term.
The report suggests that to reduce the average cost of power to the Punjab State Power Corporation Ltd.(PSPCL) should shut down two thermal plants at Ropar and Lehra Mohabbat that produce power at a much higher cost than alternatives available to the power utility.
Two units of Ropar thermal plant have already been closed and the remaining four units have outlived their life span of 25 years. The last unit at Ropar was commissioned in 1993.