While in the budget 2015-16, the government had identified five ultra mega power projects (UMPP) to be built across the country starting 2015, only three are likely to see bidding this fiscal, attracting a total investment of Rs 90,000 crore.
According to the Mid-Year Economic Analysis 2015-16, two UMPPs are unlikely to go through this year.
“Bidding out three UMPPs namely Cheyyur UMPP, Tamil Nadu, Bedabahal UMPP, Odisha and Bihar UMPP in this financial year would attract an investment of approximately Rs 90,000 crore,” said the analysis.
According to government documents, bid process for Bedabahal UMPP and Cheyyur UMPP would be initiated after revision of Standard Bidding Documents, which is currently underway.
The analysis however stated that there are some issues relating to Deoghar and Chhattisgarh UMPPs. “Coal blocks allocated to Deoghar UMPP has complex issues viz. interest complexities, law and order problems,” it added.
In a meeting held in July last year, a representative of the government of Chhattisgarh informed the Centre that due to surplus power in the state, the government is not keen on setting up the UMPP at present.
Earlier, in his budget speech, finance minister Arun Jaitley had proposed to set up 5 new Ultra Mega Power Projects, each of 4,000 MWs in the plug-and-play mode. “All clearances and linkages will be in place before the project is awarded by a transparent auction system. The government would consider similar plug-and-play projects in other infrastructure sectors such as roads, ports, rail lines, airports etc,” he had said. He also added that the second unit of Kudankulam Nuclear Power Station will be commissioned in 2015-16.
Also, laying the focus on road and rail, Jaitley had proposed to increase spending outlay for the sectors to boost infrastructure. Outlays on both the roads and the gross budgetary support to the railways was increased by Rs 14,031 crore, and Rs 10,050 crore respectively.
The central government has so far awarded four UMPPs — Sasan in Madhya Pradesh, Mundra in Gujarat, Krishnapatnam in Andhra Pradesh and Tilaiya in Jharkhand to the successful bidders. The projects are at different state of development.
The Mundra UMPP is fully commissioned and is generating electricity. Four units of Sasan UMPP (4×660 MW) have been commissioned and one unit (660 MW) has been synchronized so far.
The remaining units of Sasan and other awarded UMPPs are expected in 12th Plan (except last unit of Tilaiya UMPP, which is likely to come in 13th Plan.)
While Tata Power Ltd is setting up the Mundra UMPP, other three UMPPs are being built by Reliance Power Ltd.
The government has laid emphasis on UMPPs to develop large capacity projects at the national level to meet the growing electricity requirements. UMPPs are typically very large sized projects, approximately 4,000 MW each, involving an estimated investment of about Rs 25,000 crore each.