Adani, Jindal Power, Sterlite and GMR pull out of UMPPs race

Adani, Jindal Power, Sterlite and GMR have pulled out of the race for ultra mega power projects in Odisha and Tamil Nadu, leaving only state-run NTPC in the fray for the proposed 4,000 MW size plants.
"Adani, Jindal Power, Sterlite and GMR had purchased RFP (Request for Proposal) documents but the four have now submitted letters to PFC stating that they are withdrawing from the further bid process," an official said.
Only NTPC is left in the fray now for these proposed plants, he added.
Power Finance Corporation (PFC) is the nodal agency for UMPPs in the country.
The official, however, did not specify the reason for withdrawal.

For the Odisha UMPP, NTPC, NHPC, Tata, Adani, JSW Energy, Jindal Power, Sterlite, CLP and L&T were among the pre-qualified firms while for the Cheyyur (Tamil Nadu) UMPP, NTPC, Adani, CLP, GMR, Jindal, JSW Energy, Sterlite, L&T were among the pre-qualified parties.

Odisha UMPP is a pit-head power project. Based on domestic coal to be sourced from allocated captive coal blocks, it is expected to cost around Rs 25,000 crore.
The Cheyyur UMPP is a coastal power project, based on imported coal, with an expected investment of about Rs 24,200 crore.
The preliminary bids for these projects were invited last year, after the government revised the existing Standard Bidding Documents (SBDs).

Under the revised norms, any escalation in cost of fuel will be passed on to the consumer as higher tariff and the companies executing projects will have to mandatorily source equipment from domestic manufacturers.
An UMPP is a thermal power project of at least 4,000 MW capacity.
So far, four UMPPs have been awarded. Of this, Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand) have been bagged by Reliance Power. Tata Power is operating the Mundra UMPP in Gujarat.