Punjab State Power Corp Returns To Profit At Rs 564 Crore, On Abundant Coal Supply From Regional Sources

The firm attributed this growth to the improved productivity of the Pachhwara coal mine, which resulted in the availability of cheaper coal for the company, in turn, helping in reducing costs.

The Punjab State Power Corporation Limited marked a return to profitability in the firm’s quarterly results for the period ending September 2023. The state-run electricity company noted that it earned a profit of Rs 564.76 crore for the period ending September 2023, against a loss of Rs 1,880.25 crore logged during the corresponding period a year earlier. 

The firm attributed this growth to the improved productivity of the Pachhwara coal mine, which resulted in the availability of cheaper coal for the company, in turn, helping in reducing costs. The company also stated that it managed to keep its expenses related to power purchases in check as it ensured to generate 19 per cent more electricity from its thermals at Lehra Mohabbat and Ropar regions. 

Additionally, the electricity distribution company saw an improvement in electricity generation from its own sources. It noted that its Hydro plants generated almost 21 per cent more electricity, while the BBMB hydel plants logged an improvement in generation capacity by 14 per cent. 

Further, the firm significantly reduced power purchases via short-term and purchase from exchange by 48 per cent. The productivity of the Pachhwara mine also helped the company lower its coal imports. The usage of imported coal remained minimal at the private thermals in Rajpura and Talwandi Sabo regions. 

In its financial statements, the firm reported a massive leap in the sale of power in exchange from Rs 293 crore during the April to September period in 2022, to Rs 924 crore during the corresponding period in 2023. The company’s purchase of power from exchange significantly improved from Rs 1,914 crore during the April to September period in 2022, to Rs 1,138 crore during the corresponding period in 2023. The state-run power company also purchased from the exchange at a lower rate of Rs 4.59 per unit on average, against Rs 5.54 per unit on a year-on-year (YoY) basis. 

The firm also reported a reduction in transmission and distribution losses by nearly 1 per cent. It also saw a complete subsidy payment of Rs 12,342 crore by the Punjab Government up to September 2023, against Rs 13,742 crore paid during 2022-23.