Punjab government in talks with NTPC for 2,630 MW power plant

The Punjab state government is negotiating with power major National Thermal Power Corporation (NTPC) to set up the state's biggest 2,640 MW thermal power plant proposed at Gidderbaha in Muktsar.

According to the Indian Express the state government is also talking to other potential bidders to take up the project on build, operate, own basis even as it continues its dialogue with the NTPC. According to the report top NTPC officials have had discussions with Punjab chief secretary S C Agarwal which were followed by a round of discussion between top functionaries of Punjab Power Corporation (Powercom) and the NTPC.

Even when the discussions were at an initial stage, official sources pegged the enhancement of generation capacity with the ''deal'' at 4,000 MW the report said.

The report quoted Agarwal as saying: ''We will be glad if NTPC commissions the project. Our discussions are at a preliminary stage. We are also pursuing other options simultaneously and the decision will be entirely on merit.''

The report said that according to top official sources the discussions also included the prospect of reworking the percentage of power to be allocated to Punjab while leaving the rest for use by the NTPC after the project completion.

The report said the issue of coal linkage, which has been a major roadblock, had also come up for discussion and the government was of the opinion that the NTPC would be better placed than many others to negotiate coal linkages.