The Punjab government has decided to acquire 2,100 acres of land for a 2,000 mw power project at village Banwala in district Mansa for its much-touted Talwandi Sabo power project.
A copy of the current status of Talwandi Sabo power project prepared by the Punjab State Electricity Board (PSEB) says, “Notification under section 6 of the Land Acquisition Act is ready and is to be published shortly.” The Cabinet has approved the compensation to be paid to the landowners along with the relief and rehabilitation measures.
The status report prepared by PSEB for the chief minister (copy with FE) further says that entire land acquisition process would be completed by the end of January in 2008. Also that the power finance corporation had been appointed as consultants, in February, for this project. It was decided to set up two power plants of 1,000 mw each at Talwandi Sabo and Nabha. Subsequently in April, special purpose vehicles were set up as wholly-owned subsidiary companies of the PSEB for each project.
The PSEB’s latest status report says that it had been decided to set up the two projects through tariff-based bidding on BOO basis. The Union coal ministry has approved the grant of coal linkage of 8.7 million tonnes per annum for the project. The Punjab government is also applying for a separate coal block for the project and has approved waster linkage of 80 cusecs. Also, the plan layout has been finalised.
The status report sent to chief minister claims that rapid environmental studies have been completed and the state government was to apply to ministry of environment and forest for clearance. A study on road and rail linkage was complete while central electricity authority has completed the study for evacuation of 200-mw power. At present the PSEB does not have 400 kv transmission systems. It plans to have a 400 kv ring for Punjab that would enable efficient transmission and distribution of power.
As per the PSEB report, the bidding process was on and 10 bids had been received as of now. After bidding evaluation by May 2008, the SPV would be handed over to the selected developer in June 2008. As per the timeline approved by the regulator, first unit of Talwandi Sabo power project would be commissioned after 48 months from handing over of SPV that is by June 2012. The PSEB has offered special incentive to the developer for early completion of the project because of which first unit is likely to be commissioned latest by January 2012.