GVK Power & Infrastructure Ltd has signed a supplementary power purchase agreement with Punjab State Power Corporation Ltd, for its power project located at Tarn Taran in Punjab.
This will pave way for power generation at the 2x270 MW thermal power plant situated in Goindwal Sahib district of Punjab and also boost cash flows for the company.
The agreement comes in the backdrop of GVK Power (Goindwal Sahib) Ltd, a subsidiary of GVK Power, receiving a letter of award for long-term coal linkage for the power plant, which was earlier stranded due to lack of fuel.
In fact, coal allocation made to the company for the project from the Tokisud mine was cancelled by the Government after the apex court order cancelling all coal block allocation.
The company had received approval from Coal India Ltd, declaring it as the provisional successful bidder for the award of coal from CCL (G11) and Korea Rewa under the Shakti Scheme, 2017 of the Central Government.