The state government of Punjab has signed a power purchase deal with Sutlej Jal Vidyut Nigam (SJVN) to supply 1,200 megawatts (MW) of solar power.

Sutlej Jal Vidyut Nigam has signed a deal with Punjab Chief Minister Bhagwant Mann on Thursday with a proposed rate of Rs 2.53 per unit for the 1,000 MW of power and 2.75 per unit for another 200 MW of power.

Punjab State Power Corporation Ltd (PSPCL) had floated the tenders for power procurements from solar projects established in Punjab and other parts of the country.

According to the statement provided by Bhagwant Mann, the bidding was for Rs 2.59 per unit but was negotiated down to Rs 2.53 per unit for the 1,000 MW of power. In contrast, for the 200 MW of power, the bid was made at Rs 2.79 per unit but was negotiated down to Rs 2.75 per unit.

He even added that the state government has saved Rs 431 crore through these negotiations.

Mann said that between 2007 – 2017, none of the power project deals was under Rs 7 per unit; however this deal was signed at a very nominal cost.

The rates have been fixed for 25 years,, and PSPCL does not intend to pay any transmission charges.