Delay in land acquisition, other reasons, hit UMPP projects

Some ultra mega power projects (UMPPs) have been delayed due to a host of reasons, including non-finalisation of sites by states and land acquisition, Power Minister Piyush Goyal informed Parliament today.
In a written reply to the Lok Sabha, the minister said, "The reasons for delay in setting up of some ultra mega power projects (UMPPs) are non-finalisation of sites by the host states, delay in transfer or acquisition of land, change in regulation internationally pertaining to imported coal and court case."
The minister further said, "Ministry of Environment and Forests has informed that both, the Pindrakhi and Puta Parogia coal blocks, linked to Chhattisgarh UMPP fall in the inviolate area (where coal mining cannot take place due to prevalence of a dense forest cover) and it is not possible to consider forest clearance to these blocks."

Allotment of a coal block is a pre-requisite for setting up of UMPPs having generation capacity of 4,000 MW or more.
The minister said that the government has cancelled the bids for UMPPs in Bedabahal (Odisha) and Cheyyur (Tamil Nadu).
The bids were cancelled due to tepid private sector response and funding issues raised by bankers.
"Action has already been taken to constitute an Expert Committee under the Chairmanship of Pratyush Sinha (former Central Vigilance Commissioner) for standard bidding documents applicable to UMPPs," Goyal said.
He added that the bidding process for at least two UMPPs -- Odisha and Tamil Nadu -- is to be initiated during the calender year 2015.