Selection of developer for Bhedabahal UMPP by Jan 2014

The Union power ministry has decided to complete the process of bidding and award of projects for the Bhedabahal (Odisha) and Cheyyur (Tamil Nadu) ultra mega power projects (UMPPs) by January next year. The decision was taken at a recent meeting of the power ministry. Power Finance Corporation (PFC), the nodal agency for UMPPs in the country, has invited preliminary bids for selection of developers. As per the revised standard bidding documents, the projects would be set up on design, build, finance, operate and transfer (DBFOT) basis. The Odisha Integrated Power Ltd (OIPL), a fully owned subsidiary of Power Finance Corporation (PFC) is conducting the bidding process for selection of developer for the first 4,000 Mw UMPP in Odisha at Bhedabahal. OIPL, a special purpose vehicle (SPV) formed for implementing the UMPP, has been authorised by the Odisha government to take all necessary decisions that may be required for selection of the developer. The decisions are to be taken by the SPV in accordance with the ‘Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees’ issued by the Union power ministry under Electricity Act-2003. State-owned power trading firm Gridco Ltd has been appointed as the lead utility among all the utilities that will be allocated power from the Bhedabhal UMPP. Gridco will discharge the obligations on behalf of all the individual entities. The government of India recently scrapped the initial bids received from 20 power companies for setting up this UMPP since the bids were invited as per the previous standard bidding documents (SBDs). Bigwigs in the power sector like NTPC, Tata Power, Adani Power, JSW Energy and Jindal Steel & Power Ltd (JSPL) had evinced interest in developing the UMPP. The UMPP needs 3,100 acres of land in all. Odisha would get 1,300 Mw as its share from this project. Water for this UMPP has been allocated from the Ib river. Check dams and barrages would be put up on the river for storage and drawal of water.  Meenakshi, Meenakshi-B and Dipside Meenakshi coal blocks have been allotted for the UMPP with a total reserve of 880 million tonnes. Notification under Section 6 (1) of Land Acquisition Act has been issued for acquisition of private land totalling to 2732.56 acres in six villages in Sundargarh district. Two more UMPPs will be set up in Odisha. While the second UMPP will be located at Bijoypatna in Chandbali tehsil of Bhadrak district, the third UMPP will come up at Narla under Kesinga sub-division in Kalahandi district. The sites have been selected after field visits by PFC officials. 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 2,000 Mw each to the state grid.