The Punjab State Power Corporation Limited (Pspcl) has issued a termination notice to the company, an official statement said.
The development assumes significance as several Punjab Congress leaders, including Navjot Singh Sidhu, have been pressing for scrapping faulty PPAs signed during the previous SAD-BJP regime to provide electricity to people at cheaper rates.
The GVK power project was set up at Goindwal Sahib with a capacity of 2X270 MW. GVK has been generating energy by arranging coal from Coal India limited. As per the PPA, the company was required to arrange a captive coal mine but it failed to do so even after the lapse of more than five years of synchronisation with the grid.