With Tata Power Company Ltd preparing to commence coal-fired thermal power production in a phased manner in the next few months at the 4,000 megawatt ultra-mega power project (UMPP) at Mundra, the Central Electricity Authority is likely to decide soon on a second UMPP in the State, to be set up with the estimated investment of Rs 20,000 crore.

“CEA officials have inspected a few sites in Gujarat and zeroed in on Lodhava village in Kodinar taluka of Junagarh district. But they are yet to take a final decision,” Mr D.J. Pandian, Principal Secretary (Energy and Petrochemicals), told Business Line on Wednesday.

The CEA is currently setting up five UMPPs across India, through various private players, including at Mundra where the Tatas are developing it.

As soon as the CEA finalises the site, the Centre would launch the process to invite bids.

The first phase of 1,600 MW, out of 4,000 MW, is almost ready and expected to be commissioned soon.

The Tatas recently urged the Power Grid Corporation of India Ltd to complete grid work for evacuating power from the UMPP.

For the second UMPP in Gujarat, the CEA officials had, over the last few months, scouted for a site in coastal districts such as Porbandar and Kutch as well, besides Junagarh. After technical evaluation, Lodhava village could be ideal for the proposed UMPP in view of its proximity to the Arabian Sea, facilitating coal imports and water for coal washing.

Gujarat is expected to get 40 per cent of the power generated at the UMPP while the rest would be allocated to other states through the national grid.

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