Millennium Post

Fate of Odisha, Tamil Nadu UMPPs to be decided today

After the withdrawal of private players from the bidding process, the government will on Monday decide whether to accept the sole bid of NTPC for proposed ultra mega power projects (UMPPs) in Odisha and Tamil Nadu.

Power Minister Piyush Goyal will on Monday hold a meeting in this regard.

The private firms, which had participated in the first round of bidding for both the projects, withdrew their bids citing difficulties in securing finances for these projects. As a result, while state-owned NTPC has emerged as the sole bidder for the Tamil Nadu project, NTPC and a NHPC-BHEL joint venture are in the fray for the Odisha UMPP.

Country's largest thermal power producer NTPC has emerged as the sole bidder for the 4,000 MW Cheyyur project in Tamil Nadu. The proposed imported coal-based plant will be constructed at a cost of Rs 25,000 crore.

"If a public sector company is the only bidder then it is awarded the project. But if a private firm is the sole bidder, the tender is scrapped," according to sources. Among the private players in the fray were Adani Power, CLP India, Jindal Steel & power, JSW Energy, Sterlite Energy and Tata Power.
The final price bids for a similar 4,000 MW project at Bedabahal in Odisha will be opened on January 7.

Adani Power, CLP India, GMR Energy, Jindal Steel & power, JSW Energy and Sterlite Energy were among the private companies, and PSUs NTPC and NHPC participated in the first round of bidding for the Odisha plant.

The pithead project is likely to entail an investment of about Rs 24,000 crore.
Association of Power Producers (APP), a body representing the private firms had written to the Power Ministry explaining the private companies' inability in setting up the plants. APP also said that the DBFOT (design, build, finance, operate and transfer) model is not feasible for these UMPPs. 
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