INDIA: Ultra mega power plans to speed up

It would be mandatory for companies executing ultra mega power projects (UMPP) to commission a minimum one unit (about 660 mw) in the 11th Plan (2007-12).

The government is considering a mechanism to catch up with the lost time on account of delays in awarding the controversial Sasan project. The proposal would be applicable to all nine UMPPs.

UMPPs should start giving tangible results soon. We are planning to ask bidders of all UMPPs if they could advance the implementation schedule of their projects and commission at least one unit by 2012. However, this would depend on the completion of bidding process for all the proposed nine UMPPs by early next year,” an official in power ministry told ET.

For the two projects, Mundra and Sasan, where bidding process has already been completed, the successful bidders have been asked to complete one unit of 660 mw by 2012. The move is aimed at augmenting government efforts to achieve the targeted addition of 78,577 mw of additional capacity during the 11th Plan. While the government is confident of achieving the target, there are doubts about a few projects.

The UMPPs are now being considered for providing additional generation capacity of 6,000 mw during the 11th Plan. “Tata Power, that has won the bid for Mundra project, has agreed to add two units by the end of the Plan period. We are also planning to ask Reliance Power to commission at least one unit at Sasan by that time,” he said.

In the letter of intent, Reliance Power has agreed to commission the first unit in 69 months from the date of signing the power purchase agreement. This will have to be compressed to 50 months if the unit has to be operationalised during the 11th Plan.

The condition may also be imposed for two other projects, Krishnapatnam and Tilaiya, where the bidding process has started. Other projects, including in Gujarat, Maharashtra, Orissa and Tamil Nadu, may also be asked for earlier completion schedule.

If all the nine projects commission one unit in 3-4 years, we could have over 6,000 mw of operational generation capacity by 2012, the source said. The government is weighing on the UMPPs because there is feeling the targeted generation capacity may not be achieved even in the current Plan. The targets haven’t been achieved in the last two Plans.

Via: India Economic Times

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