The Hindu Business Line : Bid ‘loopholes’ in ultra mega power projects plugged

New Delhi, Sept. 11 The Government has set right the “loopholes” encountered in the bidding process for the first set of ultra mega power projects (UMPPs) and is hopeful of putting the generation capacity addition on fast track through the execution of a slew of these 4,000 MW projects.

Speaking at an event here, the Power Minister, Mr Sushilkumar Shinde, said while the “loopholes” in the bidding process of UMPPs had been corrected, problems holding up execution of merchant power plants totalling a capacity of 12,000 MW have also been sorted out.

He said that the capacity addition target of over 78,000 MW set for the current Plan period can be achieved through various programmes and policies the Ministry has been working on. Reiterating his commitment to electrify every village in the country by 2009 and provide electricity to every household by 2012, Mr Shinde emphasised on the need for ushering in open access in the power sector.

Mr Shinde also said the Government has added yet another UMPP to the list of the proposed 4,000 MW projects already being executed, thereby bringing the total to 10 projects.

“The government has launched a special initiative for the development of coal-based Ultra Mega Power Projects.... Ten such projects have already been identified to boost capacity ...a survey team will be deployed soon to carry out the required formalities for the latest project,” he said while inaugurating the Tenth India Power Forum, 2007, organised by India Energy Forum.

The Government had earlier announced nine ultra mega power projects, of which two — Sasan and Mundra — have been awarded to ADAG Reliance Power Ltd and Tata Power respectively. Earlier on September 5, Mr Shinde had hinted at considering an UMPP at Marakkanam in Tamil Nadu, besides the already proposed one at Cheyyur.

“We will achieve the 78,579 MW power addition target in the current Five-Year Plan,” Mr Shinde said.

Speaking on the occasion, the Power Secretary, Mr Anil Razdan, said that the Eleventh Plan will not only bring huge opportunities for the industries active in the power sector but also generate employment on a large scale in urban as well as rural areas.

In his address, Mr B K Chaturvedi, Member, Planning Commission, described theft of electricity as a major challenge and stressed on the need to plug the leak.

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