Govt says no to cap on number of power projects alloted to a firm

The government today ruled out any possibility of putting cap on the number of ultra mega power projects alloted to a single player citing legal impossibility in doing so.     

"The government cannot limit the number of ultra mega power projects alloted to a single player ... Legally it is not possible," Power Minister Sushil Kumar Shinde said at a function organised by industry body FICCI here today.     

Concerns have been raised over the number of UMPP alloted to a single player as each high capacity project need huge investment of about Rs 20,000 crore.     

"There no harm in awarding 10 such prestigious projects to a single company but we have to see whether it is capable of executing these," Shinde had said earlier.     

On the Budget 2009-10, he said it has been very good for the power sector.     

The Budget gave a big boost to power reforms programme by increasing allocation to Rs 2,080 crore, or a rise of 160 per cent from the previous fiscal.