Ultra Mega Power Projects

Oct 28, 2013 No Comments by

About UMPP

The ultra mega power projects are the power projects which are initiated by the Government of India along with Central Electricity Authority and Power Finance Corporation Ltd. The basic vision of these power projects is to provide power to all in the country. Each power projects has the capacity of producing minimum 4000 MW of power. This has the name of creating additional capacity of 100000 MW by 2014. The first UMPP, developed by Tata Power at Mundra, Gujarat contributes 4,000 MW power to the northern grid.

Special Purpose Vehicles

In order to reduce risk perception and get good response to competitive bidding, PFC incorporates Special Purpose Vehicles for each UMPP to undertake the bidding process. The purpose of the SPVs is to carry out the bid process management and obtain various clearances for the projects so that the same are transferred to the successful bidder.

Role of SPV’s

1. Appointment of Consultants to undertake preparation of Project Report, preparation of Rapid Environment Impact Assessment Report etc.

2. Appointment of Consultants for International Competitive Bidding, document preparation & evaluation.

3. To finalize RFQ/ RFP documents in consultation with States / bidders.

4. Acquisition of land for the project.

5. Obtaining Coal blocks for pit-head projects.

6. Getting clearance regarding allocation of water by the State Govt. for pithead locations.

7. Approval for use of sea water from Maritime Board/ other Govt. Agencies for coastal locations.

8. Obtain clearance from the State Pollution Control Board, initiate forest clearance etc.

9. Obtaining geological reports/ other related data from CMPDI for the coal blocks.

10. Tie up the off-take/ sale of power.

Role of Ministry of Power

Ministry of Power plays important role in the development of UMPPs by coordinating between various central government and state government agencies. Some of the key activities of ministry of power are as follows.

1. Coordination with Central Ministries/Agencies for ensuring coal block allotment, environment clearances and water linkage.

2. Getting required support from State Governments and their agencies.

3. Working out allocation of power to different States from UMPPs in consultation with the States.

4. Facilitating proper payment security mechanism with State government.

5. Monitoring the progress of Shell companies with respect to predetermined timelines.

Bidding Process

To bid for these projects a two stage selection process has been adopted. The first stage of bidding involves Request for Qualification containing qualifying criteria for selection of bidders. The second stage of the bidding process invites Request for Proposals from the bidders.

Role of State Government

States hosting the UMPPs and the other power procuring States are playing a pro-active role. These states play a decisive role in implementation of the Rehabilitation & Resettlement Plan; provide authorization to the PFC/SPV to carry out the bidding process on behalf of the distribution utilities and facilitating by signing of the Power Purchase Agreement.

Role of Shell Companies

Shell companies are responsible for the following activities.

1. Appointment of Consultants to undertake preparation of Project Report.

2.  Initiate land acquisition proceedings.

3. Obtain coal linkages/ allocation of captive coal blocks for pit-head projects.

4. Allocation of water by the State Govt. for pit-head locations.

5. Approval for use of seawater from Maritime Board/ other Govt. Agencies for coastal locations.

List of Proposed UMPP’s in India

1. UMPP at Mundra in Gujarat

2. UMPP at Sasan in Madhya Pradesh

3. UMPP at Krishnapatnam in Andhra Pradesh

4. UMPP near Tilaiya dam in Jharkhand

5. UMPP at Sundergarh district in Orissa

6. UMPP at Cheyyur in Tamil Nadu

7. UMPP at Girye in Maharashtra

8. UMPP at Tadri in Karnataka

9. UMPP at Akaltara in Chhattisgarh

1. UMPP at Mundra in Gujarat

This is the first UMPP in India which is developed by Tata Power Company Ltd at Mundra in Gujarat. It has the capacity to produce 4000 MW power and it consists of 5 units producing 800 MW power each. The SPV used here is Coastal Gujarat Power Ltd (CGPL). And all the 5 units of Mundra UMPP have been commissioned.

Key facts of Mundra UMPP

  • India’s most energy efficient plant using supercritical technology
  • Main power generation equipment sourced from Korea and Japan
  • Creation of 5000 construction jobs and 700 operations-oriented jobs
  • A plant with lower Greenhouse Gas (GHG) emissions
  • The Mundra Project will meet 2% of India’s power needs

2. UMPP at Sasan in Madhya Pradesh

Sasan UMPP is located in Madhya Pradesh. The SPV used here is Sasan Power Ltd. It has the capacity to produce 3960 MW power. This project is developed by Reliance Power. The 1st unit of this UMPP was commissioned on March 2013 and it has the capacity of 660 MW. This UMPP is estimated to commission by June 2014.

Key Features of Sasan UMPP

  • The first domestic coal based ultra mega power project
  • The largest pit-head based integrated power and coal project
  • The lowest cost of generation
  • The largest debt arrangement on project finance basis across any industry in India

3. UMPP at Krishnapatnam in Andhra Pradesh

This UMPP is located at Krishnapatnam in Andhra Pradesh. The SPV used here is Coastal Andhra Power Ltd. It has the capacity to produce 3960 MW power. And it is owned by Reliance Power.

Key facts about Krishnapatnam UMPP

  • Total land required for the project is about 2600 acres.
  • State forest clearance has been obtained.
  • Power Purchase Agreement has been signed.
  • The lenders for the project are a consortium of 12 banks lead by IDBI Bank.
  • The lending was done on a project finance basis for an estimated project cost of around Rs. 17,450 crs (US$ 4 billion) with a debt-equity ratio of 75:25.

4. UMPP near Tilaiya dam in Jharkhand

Tilaiya Ultra Mega Power Project (UMPP) is an upcoming 3,960 MW power project at Hazaribagh district, Jharkhand. It is the third UMPP in Reliance Power’s power portfolio.Tilaiya UMPP is a pit-head power project and has been allocated two captive coal mine blocks Kerandari ‘B’ and ‘C’ having reserves of almost 1.3 billion. The mines are located at a distance of 115 kms from the project site.

Key Features of Tilaiya UMPP

  • The largest pit-head based integrated power and coal project.
  • The lowest cost of generation.
  • The power generated form Tilaiya Power Plant will be supplied to 18 procurers from 10 states of northern and eastern India at a tariff of Rs. 1.77/kWh (Kilo Watt Hour).
  • The power project is expected to start generating power from the year 2015.
  • The power and coal mine put together are estimated to cost around Rs 24,000 cr.

5. UMPP at Sundergarh district in Orissa

This UMPP has a capacity of producing 4000MW power being set up by the Centre in Sunderagarh district in Orissa is likely to be commissioned by 2013. Orissa will get about 1300MW power from this project. About Rs 16,000 crore is proposed to be invested in this UMPP. A Special Purpose Vehicle (SPV) named as Orissa Integrated Power Limited has been formed. The project requires about 4000 acres of land and the process of land acquisition has started.

6. UMPP at Cheyyur in Tamil Nadu

The cheyyur UMPP has the capacity of producing 4000 MW power by using imported coal and super-critical technology. Super critical energy helps to maximize the conversion of coal’s thermal energy into electrical energy. The SPV used here is Coastal Tamil Nadu power Ltd.

7. UMPP at Girye in Maharashtra

The Girye UMPP has the capacity of producing 4000 MW power. The SPV used here is Coastal Maharashtra Power Ltd. The bidding process will be initiated after availability of a suitable site is confirmed by the State Government. The Maharashtra government has proposed another site for the proposed ultra mega power project in Malwan taluku in Sindhudurg district of the state.

8. UMPP at Tadri in Karnataka

The Tadri UMPP has the capacity of producing 4000 MW power. The SPV used here is National Thermal Power Corporation. A community of fishermen is opposing the proposed Tadri project, which could prevent land acquisition. The state government had earlier offered two new sites at Kudgi and Mannur. Both proposals later turned out to be unfeasible as they are located 200-300 kms away from the coastline, leading to higher transportation costs for fuel, water, equipment that could spike tariffs.

9. UMPP at Akaltara in Chhattisgarh

The Akaltara UMPP has the capacity of producing 4000 MW power. The SPV used here is Sarguja ultra mega power project. The generation cost for these plants is estimated to be between Rs 1.50 and Rs 1.80 per unit. Akaltara is interior location and here the transportation cost may be higher compared to the other coastal areas.
 

 

 

 

 

 

 

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