The Hindu Business Line : No cap on ultra mega power project allocation to single firm

The Power Minister, Mr Sushil Kumar Shinde (right), with Mr T.N.Thakur, Chairman and Managing Director of PTC India Ltd, at a conference on ’Open Access’, in the Capital on Tuesday.

Our Bureau

New Delhi, July 7 The Centre has virtually ruled out the possibility of capping the number of the Ultra Mega Power Projects (UMPPs) that can be allotted to a single firm.

“It is not legally possible to limit the number of UMPPs that a single company can set up. We are studying the balance-sheets of companies. We will make some changes (to ensure timely execution of the projects),” the Power Minister, Mr Sushil Kumar Shinde, said at a function organised by industry body Assocham.

Mr Shinde’s statement comes in the wake of concerns raised over the issue, especially since each such 4,000 MW project requires investment of up to Rs 20,000 crore. There have been concerns over the viability and timely execution of these massive projects as one developer — Reliance Power Ltd — has got three of the four such projects awarded so far.

Budget proposals hailed

Responding to the proposals in the Budget, Mr Shinde said it has been very good for the power sector. The Budget proposed a hike in the allocation for the Centre’s flagship distribution reforms scheme, APDRP, by 160 per cent over the previous fiscal. As part of the continued focus on rural development, budgetary allocation under Rajiv Gandhi Grameen Viduytikaran Yojana (RGGVY) for fiscal 2009-10 was also increased by 27 per cent to Rs 7,000 crore. The Centre has so far allotted four Ultra Mega Power Projects out of which Reliance Power has bagged three, located at Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand). Tata Power is developing one project in Mundra (Gujarat). The Power Ministry is planning to award two more UMPPs at Tamil Nadu and Orissa in the current fiscal.