PFC invites initial bids for Odisha, Tamil Nadu UMPPs

Power Finance Corporation, the nodal agency for ultra mega power projects in the country, has invited preliminary bids for setting up a UMPP each in Odisha and Tamil Nadu.

The Power Ministry proposes to set up a 4,000 MW ultra mega power project at Bedabahal (Odisha) and Cheyyur (Tamil Nadu).

"Under the initiative for development of UMPPs launched by the Ministry of Power, PFC invites applications for selection of eligible bidders for development and operation of 4,000 MW Cheyyur project on DBFOT basis," a notice inviting tender on PFC website said.

DBFOT is design, build, finance, operate and transfer model.

Cheyyur UMPP is a coastal power project based on imported coal. The beneficiary states are Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Kerala, Uttar Pradesh and Punjab.

In another notice, PFC also invited initial bids for executing 4,000 MW UMPP at Bedabahal in Odisha.

The project, to be set up on DBFOT basis, is a coal-fired pit head project near Bedabahal village in the state.

The coal from the project will be sourced from the mines -- Meenakshi, Meenakshi B and dip side of Meenakshi in Ib valley coalfields allocated by Coal India for this project.

Estimated investment in each UMPP is approximately Rs 20,000 crore.

These bids have been invited after the government revised the existing Standard Bidding Documents for Case-II projects including UMPPs.

Under the revised norms, any escalation in cost of fuel will be passed on to the consumer in the form of higher tariff and the companies, executing the projects, will have to mandatorily source equipment from the domestic manufacturers.

Case-I projects are where developers have the choice to decide on location, fuel and technology to be used. In Case-II, the location of the project and fuel to be used are already decided before the start of competitive bidding.

So far, four UMPPs have been awarded of which three -- Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand) -- have been bagged by Reliance Power.

Tata Power is operating the Mundra UMPP in Gujarat.