Captive power growth picking up in Punjab

Entrepreneurs of Punjab are getting into power generation projects.

Khamanu-based Laxmi Overseas Ltd is putting up a 30 Mw biomass-based (wheat straw and husk) power project in Khamanu. Husk as an input will come from the firm's paddy-processing unit.

The company processed close to 1 million tonnes of paddy in 2004-05. It is investing Rs 120 crore (1 Mw needs an investment of Rs 4 crore) in its state-of-the art power plant, for which turbines are being imported from Japan and electrical equipment from Siemens, Germany.

The plant is scheduled to be commissioned by December next year. The managing director of the company, B S Uppal, told Business Standard that 4 Mw would be for the firm's consumption and the rest would be sold to the Punjab State Electricity Board (PSEB) at Rs 3.48 per unit.

"It will cost us less than Rs 2 per unit whereas we are buying power from the PSEB at Rs 4.50 per unit. We are allowed to sell power to bulk users, but since the PSEB grid is only 1 km from our plant, it is economical for us to sell it to the PSEB," Uppal said.

The calorific value of husk is very high and 1 kg of husk can generate 1 unit of power. Lalru-based Agro Dutch Ltd is producing power for its own consumption from rice husk and has decided to add 1.2 Mw plant to its plant of the same capacity next year.

Barawala-based Trident group, which has a 9.4 Mw co generation plant at Barwala in District Sangrur, is putting up two plants of 20 Mw each, also in Barwala.

These will be co-generation plants (a co-generation plant uses rice husk and steam as input and power and steam are output) to help the expansion of textile and paper production of the group. The plant for textile production will be commissioned by July next year and the one for paper production in the first quarter of 2007-08.

Speaking about the power situation in the region, the president of the Himachal Pradesh chapter of the CII said there was about 40 per cent power deficit during the peak season in Punjab.

The neighbouring state of Himachal has many small rivers, which can help run 1-2 Mw power projects. He himself has started power generation in Mandi and said such small projects got capital subsidy from government agencies.

Derabassi-based Winsom Group has earmarked Rs 40 crore to start a hydro or agro-based plant at Sidwan near Ludhiana.

The single-window clearance from the government of Punjab and quick approval have been factors behind the private power projects in the state.