The Punjab State Electricity Board (PSEB) has decided to allow the developer of the upcoming 2,640-mw Gidderbaha thermal power project to sell its 30% power to bring down the total cost of generation. Work on the project has also been put on fast track.

?For the first time, we will allow the sale of 30% of power generated from Gidderbaha power plant by the project developer, which is aimed to cut power cost,? Gidderbaha Power Ltd CMD Anurag Aggarwal said on Friday.

Proposed to be developed over 2,432 acre in Muktsar district of the state, the total investment in the project will be Rs 13,000 crore.

The PSEB did not allow such merchant power sale by Talwandi Sabo and Rajpura thermal power projects, which are being executed by Sterlite Energy and L&T, respectively. ?These projects will cater to only the state?s power requirements,? an official said.

Gidderbaha Power, the Special Purpose Vehicle of PSEB, will also file a petition with Punjab State Electricity Regulatory Commission (PSERC) to take its approval for 30% merchant power sale.

Till now, the project was held up due to lack of clarity on coal linkage. With the Central Electricity Authority (CEA) sending recommendations for the coal linkage to the ministry of power, the project is expected to gather pace. The issue of the linkage of coal for the project is likely to be taken up soon in the meeting of the Standing Linkage Committee to be held for 12th Plan power projects. A board meeting of GPL, SPV of Punjab State Electricity Board was held on Friday, which was chaired by Anurag Agarwal.

Agarwal said GPL Board has decided to put work on the 2,640-mw Gidderbaha Thermal power project on fast track.

Earlier Section 4 notification under Land Acquisition Act was issued for approximately 2300 acre but Section 6 notification was not issued due to lack of clarity of coal linkage. Now since CEA has recommended for coal linkage, GPL Board has decided to reinitiate actions for acquiring land for the project. An expression of interest (EoI) conference is planned to be held in the last week of the April?, Agarwal said. Gidderbaha Thermal Power Project is located at village Ghagga, Theri and Babania near Gidderbaha town in Muktsar District of Punjab. Because of lack of coal linkages, the Gidderbaha power project has not taken off for over last one year. Punjab has projected 12-13 mt per annum coal as the total requirement for this ambitious project.

Power Finance Corporation Consulting Ltd (PFCCL), a wholly owned subsidiary of Power Finance Corporation Ltd, is the consultant for this project.

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