The Hindu Business Line : Govt plans `ultra-mega' power projects at coastal, pithead sites

THE Centre has started the process of identifying sites for the construction of new `ultra-mega' power projects of over 4,000 MW capacity each at coastal and pithead locations.

The site selection for the projects, to be implemented by developers selected though a tariff-based competitive bidding, is being done by the Central Electricity Authority (CEA) and four such projects could be on the anvil in the first round, Government officials said.

"The CEA has been entrusted with the initial groundwork for these projects, which would either be set up at pitheads or on the coastline if the fuel is to be imported. The Government will subsequently call for bids from players to select the developer for the projects," an official said.

The `ultra mega' projects, as the stations are being called, would qualify for greater degree of fiscal sops as compared to those being accorded to `mega power projects' so that the overall cost per mega watt (MW) is about Rs 3-3.5 crore, translating into tariffs of less than Rs 2.5 per unit, officials said.

The Centre has already initiated regional meetings with the coastal States of Tamil Nadu, Andhra Pradesh, Karnataka and Maharashtra, following which each of these States have been asked to draw up an action plan for development of coastal stations.

Easy accessibility to imported coal and availability of sea water for cooling purposes in the station have been cited as the advantages of setting up coastal stations, especially in light of the shortage is domestic coal supplies envisaged in the near future.

Besides the `ultra-mega' projects, several mega projects are also on the anvil, with several of the Southern States taking the lead in setting them up.

For instance, new mega coastal thermal projects coming up in Tamil Nadu, including two 1,000 MW projects at Tuticorin and Ennore respectively, while a 1,600 MW thermal power station is coming up in Cheyyur.

The Andhra Pradesh Generation Company is planning a mega coastal thermal power project at Krishnapuram with a capacity of 1,600 MW and clearances are being tied up for the project, Government officials involved in the exercise said.