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Friday, Dec 01, 2006
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Power Industry & Economy - Infrastructure Ultra mega power plant final contracts by Dec 31 Our Bureau
Bidding rules Bidders must give phase-wise completion schedules at the time of submitting the final bids First unit of the project must be commissioned not later than 60 months from the date of award
Mumbai , Nov. 30 The Union Government will award the final contracts to the successful bidders for the proposed two ultra mega power plants of 4,000 MW each by December 31. The contract for a third plant of similar capacity will be awarded by March 31, 2007, said Mr V.K. Garg, Chairman and Managing Director of Power Finance Corporation Ltd. The bid documents stipulate that bidders will have to provide phase-wise completion schedules for the projects at the time of submitting the final bids and the first unit of the project has to be commissioned not later than 60 months from the date of award. He was addressing the delegates at the US India Business Summit on Thursday. The summit is being jointly organised by FICCI, CII, and the US Foreign Commercial Service.
Project sites
The two coal-based power plants are coming up at Sasan in Madhya Pradesh and Mundra in Gujarat. While the Sasan plant is being constructed near a coal mine, the Mundra project, which will be located on the coast, will run on imported coal. In a bid to bolster India's power generation capacity, the Government has proposed a total of seven ultra mega power projects, with the initial groundwork being in the advanced stage for four of these projects. Mr Garg said that power from one ultra mega plant would be sold to six states, with about 24 to 30 power distribution companies buying power from the plant. As there are multiple customers willing to buy the power, the risks in such big projects are well spread. If there is continuous default from a customer then the plant is free to sell power through open access, he said.
Coal requirement
Mr Garg said that each ultra mega project would need 12 million tonnes of coal per year. With four working plants, the requirement would be 48 mt to 50 mt. The global coal requirement is 500 mt, therefore 10 per cent of global coal would be sold to India. He pointed that the global composition of coal trade will change due to the mega projects. Business houses involved in handling, transporting and shipping of coal globally would be benefited from these projects, he said.
More plants
Other than Gujarat and Madhya Pradesh, the plants are also likely to come up in Andhra Pradesh, Orissa, Maharashtra, Karnataka and Chhattisgarh, for which sites have already been identified. The Tamil Nadu and Jharkhand governments have also requested for setting up similar plants.
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