The government has scrapped the bidding process for two ultra mega power projects (UMPPs) in Odisha and Tamil Nadu due to lack of response, Power Minister Piyush Goyal said Thursday. “It has been done (cancel the bidding process). Unfortunately, we did not receive the response we expected,” he told reporters here.
The private companies, which participated in the first round of bidding for both UMPPs, that are defined by generation capacity of 4,000 MW, withdrew their bids citing problems in securing finances. Companies that bid for the Tamil Nadu UMPP included Adani Power, Jindal Steel & power, JSW Energy, Sterlite Energy, and Tata Power. Bidders for the Odisha UMPP included Adani Power, CLP India, GMR Energy, Jindal Steel and Power, JSW Energy, and Sterlite Energy.
Around one-tenths of India’s installed power generation capacity of 250,000 MW is under-utilised because of domestic coal shortages, local think-tank Integrated Research and Action for Development (IRAD) has said in a report. The report came after the Supreme Court in September cancelled 204 coal blocks allocated between 1993 and 2011, except four vested with the NTPC, SAIL and the Sasan Ultra Mega Power Project (UMPP).
It also said the country needs investments of over $250 billion for development of the power sector in the next few years. During the 12th Plan period (2012-16), India plans to add nearly 89,000 MW capacity, of which close to 70,000 MW will come from coal. (IANS)