Chandigarh/Patiala, June 24.   Power Minister  Harbhajan Singh E.T.O. today announced the successful recommissioning of the 10MW Biomass Power Plant at Village Jalkheri, District Fatehgarh Sahib, highlighting its significant environmental and economic benefits for Punjab.

Jalkheri Biomass Plant to Restart Under 20-Year Lease

PSPCL originally commissioned the 1x10MW Biomass Plant at Village Jalkheri (Dist. Fatehgarh Sahib) in June 1992.

The plant operated until July 1995. Subsequently, in July 2001, M/s Jalkheri Power Plant Ltd (JPPL) leased it.Afterward, the plant recommenced operations in July 2002 and continued until September 2007.

In 2012, a private developer was licensed to restart the project and operate it for a specific period under a lease agreement. In 2018, the plant underwent re-tendering for leasing on a ROT (Renovate, Operate, Transfer) basis.

Curbing Stubble Burning and Creating Jobs

The renovated plant recommenced operations on June 21, 2024, using advanced Denmark Technology boilers to generate electricity from 100% paddy straw. This biomass facility will annually consume about 1 lakh tons of paddy straw, aiding the state government in curbing stubble burning across nearly 50 thousand acres in Punjab. This initiative will provide direct and indirect employment to 400-500 individuals, fostering economic growth in the region.

PSPCL to Acquire Jalkheri Biomass Plant in 2044

The project offers environmental protection by mitigating air pollution from burning paddy straw. Additionally, it supports sustainable energy by reducing fossil fuel dependence and effectively utilizes Punjab’s abundant paddy straw. The Power Purchase Agreement (PPA) for the plant spans 20 years from June 21, 2024; subsequently, Punjab State Power Corporation Limited (PSPCL) will assume control.

PSPCL to Purchase Power at Reduced Tariff from Renovated Plant

In the recent tender, the final tariff of Rs. 5.84/KWH after reverse bidding was reduced by Rs. 0.07/KWH, saving Rs. 10 Crores over the lease period. M/s SAEL signed both lease and Power Purchase Agreements in 2019 and renovated the plant the same year.

PSPCL will buy all power from this plant at Rs. 5.77/- per unit: Rs. 2.27 per KWH fixed for the lease period and Rs. 3.50 per KWH variable, increasing by 5% annually.

E.T.O. Highlights Benefits of Biomass Plant

Minister Harbhajan Singh E.T.O. emphasized the project’s benefits, noting, “This initiative boosts green energy capacity, creates jobs, and tackles stubble burning, aligning with our commitment to energy security, environmental protection, and economic growth.”