Ultra Mega Power Projects: The Cost Calculus

The aim was to deliver power at competitive prices by achieving economies of scale

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Business Standard New Delhi
Last Updated : Jun 02 2015 | 12:46 AM IST
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In 2005-06, the Centre introduced ultra mega power plants (UMPPs) to develop projects of 4,000 Mw each, at coal pit heads and coastal locations. The aim was to deliver power at competitive prices by achieving economies of scale.

Though these projects were estimated to cost Rs 20,000 cr each (Rs 5 crore for every Mw capacity) the four UMPPs awarded so far have not gone as planned. Here is a look at how the cost estimates have panned out without any correlation to tariff:
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First Published: Jun 01 2015 | 11:39 PM IST

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