Ultra Mega Power Projects

Summary

Ultra Mega Power Projects (UMPP) are a series of ambitious power stations planned by the Government of India.[1] This would entail the creation of an additional capacity of at least 100,000 MW by 2022. Ultra Mega Power projects, each with a capacity of 4000 MW or above, are being developed with the aim of bridging this gap.

The UMPPs are seen as an expansion of the MPP (Mega Power Projects) projects that the Government of India undertook in the 1990s, but met with limited success. The Ministry of Power, in association with the Central Electricity Authority and Power Finance Corporation Ltd., has launched an initiative for the development of coal-based UMPP's in India. These projects will be awarded to developers on the basis of competitive bidding.[2]

Based on supercritical technology, 16,000 MW of capacity has been contracted through the competitive bidding process for UMPPs. The average tariff for these projects is in the range of 2-3 per kWh which is much lower than the recent cost plus tariffs. The first UMPP, developed by Tata Power at Mundra, Gujarat has been commissioned and contributes 4,000 MW in power to the Western grid.

Special purpose vehiclesEdit

Special purpose vehicles (SPV) have been set up as wholly owned subsidiaries of the Power Finance Corporation for each UMPP that will be built. The SPV obtains various clearances, water linkage, coal mine allocation (for domestic coal based projects) etc. for the project. The SPV also initiates action for land acquisition in the name of the SPV, selects the developer through a tariff based competitive bidding process and finally transfers the SPV to the identified developer along with the various clearances, tie ups, etc.[3] The developer is then responsible to build–own–operate (BOO) these UMPP plants.

List of UMPPsEdit

According to the Power Finance Corporation, 15 UMPPs are envisioned. As of July 2012, 12 SPVs had been formed. Currently, two UMPPs have been commissioned. The table below shows the status of the 12 UMPPs for which SPVs have been formed.

Name of UMPP Special Purpose Vehicle (SPV) State Owner Capacity in MW Fuel source Status
Bhedabahal Ultra Mega Power Project Orissa Integrated Power Ltd. Odisha Not yet awarded 4,000 local coal mine Bids invited by Government of India.[4]
Cheyyur Ultra Mega Power Project Coastal Tamil Nadu Power Ltd. Tamil Nadu Not yet awarded 4,000 Imported coal Bids invited by Government of India.[4][5]
Etah Ultra Mega Power Project Coastal Uttar Pradesh Power Ltd. Uttar Pradesh Not yet awarded 4,000 Imported coal Bids invited by Government of India.[4]
Ghogarpalli Ultra Mega Power Project Ghogarpalli Integrated Power Co. Ltd. Odisha Not yet awarded 4,000 local coal mine Proposed
Girye Ultra Mega Power Project Coastal Maharashtra Mega Power Ltd. Maharashtra Not yet awarded 4,000 Imported coal Deferred
Kakwara Ultra Mega Power Project Bihar Mega Power Limited Bihar Not yet awarded 4,000 local coal mine Proposed[6][7]
Krishnapatnam Ultra Mega Power Project Coastal Andhra Power Ltd. Andhra Pradesh Reliance Power 3,960 Imported coal Deferred or Postponed
Mundra Ultra Mega Power Project Coastal Gujarat Power Ltd. Gujarat Tata Power 4,000 Imported coal All 5 units (5x800 MW) are fully functional.[8]
Nayunipalli Ultra Mega Power Project Tatiya Andhra Mega Power Ltd. Andhra Pradesh Not yet awarded 4,000 Imported coal Proposed
Sakhigopal Ultra Mega Power Project Sakhigopal Integrated Power Co. Ltd. Odisha Not yet awarded 4,000 Imported coal Proposed
Sasan Ultra Mega Power Project Sasan Power Ltd. Madhya Pradesh Reliance Power 3,960 local coal mine All 6 units (6x660 MW) are fully operational[9]
Surguja Ultra Mega Power Project Chhattisgarh Surguja Power Ltd. Chhattisgarh Not yet awarded 4,000 local coal mine Uncertain
Tadri Ultra Mega Power Project Coastal Karnataka Power Ltd. Karnataka Not yet awarded 4,000 Imported coal Deferred
Tilaiya Ultra Mega Power Project Jharkhand Integrated Power Ltd. Jharkhand Reliance Power 3,960 local coal mine Unknown. Reliance quit.[10]

Operational costsEdit

The project is being developed with the intention of providing power to consumers at minimum cost. Because of the huge size of these power plants, the cost of the electricity would be lower due to the economies of scale. The plants are estimated to cost roughly 15,000 crores each to set up.[11] The cost of generation per unit is estimated at under 2.[12]

See alsoEdit

ReferencesEdit

  1. ^ "Many ultra-mega power projects fail to take off, future uncertain".
  2. ^ India Yearbook 2007: A reference manual. New Delhi: Government of India. p. 263. ISBN 81-230-1423-6.
  3. ^ "Ultra Mega Power Projects (UMPP) – Govt. of India Initiatives". Pfc.gov.in. Retrieved 16 March 2013.
  4. ^ a b c Siddhartha P Saikia (23 February 2014). "Bids for Tamil Nadu, Odisha mega power projects to be deferred by two months | Business Line". Thehindubusinessline.com. Retrieved 6 August 2016.
  5. ^ http://ieefa.org/wp-content/uploads/2015/05/Cheyyur-UMPP-Financial-Plan-Will-Make-Electricity-Unaffordable-May-2015.pdf[bare URL PDF]
  6. ^ "ULTRA MEGA POWER PROJECTS STATUS" (PDF).
  7. ^ "Ultra Mega Power Projects". www.pfcindia.com. Retrieved 13 February 2020.
  8. ^ Virendra Pandit (25 March 2013). "Tata Power commissions Mundra UMPP 5th unit | Business Line". Thehindubusinessline.com. Retrieved 6 August 2016.
  9. ^ "Reliance Power commissions 5th unit of its Sasan UMPP". The Economic Times. PTI. 26 August 2014. Retrieved 6 August 2016.
  10. ^ PTI (29 April 2015). "As Reliance Power walks out of Tilaiya project, NTPC ready to walk in - The Economic Times". Economictimes.indiatimes.com. Retrieved 6 August 2016.
  11. ^ Microsoft Word - MOP_UMPP.doc
  12. ^ The Hindu Business Line : `Ultra-mega' power plants — Generation cost to be under 2 per unit

External linksEdit

  • The Electricity Act, 2003
  • Official website of Power Finance Corporation detailing UMPP
  • Problems of UMP - an article in Businessworld
  • Government plans Ultra mega power projects
  • Brief description of Ultra mega power projects
  • UMPP projects on SourceWatch