In-principle nod pending for two more UMPPs in Odisha

The two additional ultra mega power projects (UMPPs) proposed in Odisha are stuck due to lack of in-principle approval from the state government.

The government maintained it is unable to give its nod to the two UMPPs amid pending clarification from Power Finance Corporation (PFC) on the modalities of project implementation. PFC is the nodal agency for executing UMPPs across the country.

“We had sought information from PFC on the modalities for implementing two more UMPPs. But we are yet to get any response and this has held up the grant of nod to the two projects”, said a government official.

It has been decided to set up the second UMPP at Bijoypatna in Chandbali tehsil of Bhadrak district and the third one at Narla under Kesinga sub-division in Kalahandi district. The sites have been selected after field visits by PFC.

Two subsidiaries- Sakhigopal Integrated Power Company Ltd and Ghogarpalli Integrated Power Company Ltd have been formed by PFC for executing these two UMPPs. The second and third UMPPs would contribute 2000 MW each to the state grid.

These UMPPs would have a capacity of 4000 MW apeice and are being taken up at a total investment of Rs 20,000 crore each.

Earlier, the state government had urged the PFC officials to set aside ayacut land for UMPPs and ensure that there is minimal displacement from these mega power stations.

The collectors of Bhadrak and Kalahandi were instructed to make an assessment of private land needed and the number of persons who would face displacement due to these two additional UMPPs.

The first UMPP in the state is coming up at Bhedabahal in Sundargarh district. PFC has formed a wholly owned subsidiary Odisha Integrated Power Ltd (OIPL) for the project.OIPL has received applications from nine prospective developers- Adani Power Ltd, CLP India Ltd, Jindal Power Ltd, JSW Energy Ltd, Larsen & Toubro Ltd (L&T), National Hydro Power Corporation Ltd (NHPC), NTPC Ltd, Sterlite Infraventures Ltd and Tata Power Ltd.

The selection of bidder is being done as per the tariff based competitive bidding guidelines issued by the Central government on design, build, finance, own and transfer (DBFOT) basis.

Recently, PFC Consulting Ltd, also a fully owned subsidiary of PFC, had invited bids to select consultant for developing coal blocks allocated for the Bhedabahal UMPP.

Meenakshi, Meenakshi-B and dip side of Meenakshi blocks have been allocated for the 4000 Mw plant to be built at Bhedabahal in western Odisha’s Sundargarh district.The annual requirement of fuel for the Bhedabahal UMPP has been estimated at 19-20 million tonne of coal.

The coal from the allocated blocks will move from pit head to coal loading point at Dhuka chowk through a six-km belt conveyor system. After loading, the coal would be transported through MGR (merry go round) system of about 64 km loop length (aerial distance of 31 km).

The total land requirement of developing the coal mines is 1308 hectares (ha) - 492 ha for Menakshi, 486 ha for Meenakshi-B and 330 ha for dip side of Meenakshi coal blocks.The coal block area involves 102 ha of reserve/ protected forest, 332 ha revenue forest, 236 ha of government land and 638 ha of private land.

Central Mine Planning & Design Institute (CMPDIL), a fully owned subsidiary of Coal India Ltd (CIL), has already carried out regional exploration in Meenakshi-B and dip side of Meenakshi coal block area.