The proposed ultra mega power projects (UMPPs) at Odisha and Tamil Nadu, entailing a combined investment of Rs. 50,000 crore, have evoked a big response from major power sector players indicating investor confidence in the fuel troubled sector.
Companies led by Tata Power, JSW Energy, Jindal Power, Sterlite Infra ventures Ltd., CLP India Private Ltd, Larsen & Toubro, Adani Power, Vedanta and state-run NTPC have shown interest in taking up the two 4,000 MW UMPPs.
According to an official statement issued by Power Finance Corporation (PFC), the nodal agency for development of UMPPs, nine companies have submitted their applications in response to the Request for Qualification (RFQ). “The response from renowned and reputed applicants in the prevailing investment scenario in infrastructure sector reflects the high degree comfort and confidence the investors perceive owning to the state of preparedness of the project,’’ the statement added.
Odisha UMPP is a pit-head power project, based on domestic coal to be sourced from allocated captive coal blocks, with an expected investment of about Rs. 25,000 crore.
Land for the project is expected to be in possession shortly, water is available from Hirakud reservoir and coal supply is assured through allocated coal blocks thus eliminating fuel risk.
It is learnt that the Cheyyur UMPP in Tamil Nadu has also evoked a good response and around eight players have already shown interest by responding to the RFQ. The last date for submission of bids for the Tamil Nadu UMPP is November 28. This project involves an investment of Rs. 25,000 crore. The bid evaluation process will take about 3-4 weeks and the next round of bids or the request for proposal (RFQ) will be invited in December. In addition, companies building UMPPs have to source equipment from domestic manufacturers.
So far, four UMPPs have been awarded, of which Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand) -- have been bagged by Reliance Power. Tata Power is operating the Mundra UMPP in Gujarat.
