Three big power project bids see light
29 Jun 2009, 0152 hrs IST, Subhash Narayan, ET Bureau

NEW DELHI: The power ministry plans to award three more ultra mega power projects (UMPPs) of 4,000 MW capacity each this fiscal, a move that will
help ease the severe power shortages in many parts of the energy-starved country. The three projects, to be located in Tamil Nadu, Orissa and Gujarat, boasts of a total investment of Rs 60,000 crore, an official said, requesting anonymity.

Expediting work on the three UMPPs is part of the ministry’s 100-day agenda. It has already asked Power Finance Corporation (PFC), the nodal agency for developing UMPPs, to complete the formalities within 100 days and invite bids at the earliest.

As the name suggests, UMPPs are large projects conceived to supply power to the many distribution entities in states. Formulated on a build, own, and operate basis, these projects are aimed at boosting capacity addition. The Centre plans to add 78,577 MW of generation capacity in the Eleventh Plan.

“PFC can start bids for the two projects at Cheyyur in Tamil Nadu and Sundergarh in Orissa soon. The Gujarat one will be finalised after a team of Central Electricity Authority completes site inspection,” the official said. PFC may invite a request for proposal for the Cheyyur UMPP at by September so that the project could be awarded by December. The site has been finalised and approved by the state government.

The only glitch is the absence of a coastal regulation zone clearance for the development of a captive port near Paramakeni village for the UMPP. In Orissa’s case, the power ministry is in talks with the state government to remove the clause stipulating contribution of 5% of profit from the UMPP for peripheral area development. “We have raised the issue and are confident that the state government would review its stand,” the official said.

And as regards Gujarat, the Centre has received the most positive response yet. The government has offered four sites in Porbandar, Junagarh, Navsari and Kutchh for setting up the state’s second UMPP, the other being Tata Power’s Mundra project.