APTEL Orders Massive Refund in Punjab Power Dispute

APTEL has instructed PSPCL to refund Rs 78 crore to TSPL with applicable interest. The dispute arose over alleged mis-declaration of plant availability by TSPL in early 2017. TSPL, a significant power provider in Punjab and a subsidiary of Vedanta Limited, plays a crucial role in the state's electricity supply.

In a significant development, the Appellate Tribunal for Electricity (APTEL) has mandated the Punjab State Power Corporation Limited (PSPCL) to refund Rs 78 crore to Talwandi Sabo Power Limited (TSPL). The directive comes after PSPCL had withheld amounts from TSPL's invoices, citing mis-declaration of plant availability in early 2017.

Beyond the principal sum, PSPCL is also required to pay considerable interest, which TSPL estimates to be around Rs 180 crore. This ruling marks a vital judgement in the power sector, underscoring the importance of transparency and accuracy in power availability declarations.

TSPL, as a subsidiary of Vedanta Limited, stands as the largest private thermal power facility in North India, significantly contributing to Punjab's energy landscape by meeting 30 percent of its electricity demand. Since 2014, when TSPL's first unit came online, it has been a pivotal player in sustaining Punjab's power needs.

(With inputs from agencies.)