Chhattisgarh UMPP may get a new location

The power ministry is likely to change the location of the proposed 4,000-Mw ultra mega power project (UMPP) at Sarguja in Chhattisgarh. The project has been delayed after the environment ministry stopped clearing coal blocks to be used for the project, citing environmental reasons.

The new location has to be in proximity to the proposed site at Sarguja. “We have written to the environment ministry for expediting the clearance process for coal blocks soon. There are 15-20 blocks in Hasdeo, out of which 1-2 blocks are facing the clearance issue,” a senior power ministry official said.

When asked if the ministry would change the location of the UMPP if the clearances are not given soon, the official said, “We might look at it.” The coal ministry had awarded the Hasdeo coal block in Chhattisgarh to the Ministry of Power for captive use of the 4,000-Mw UMPP. But, the environment ministry has declared the coal block as a ‘no go’ area, where mining cannot be done as it will adversely impact the environment.According to reports, the environment ministry has said it was not consulted by the coal ministry before the blocks were allotted.

The bids for execution of the UMPP were invited this March with the last date being May 3, but due to environmental clearances, the date has been extended to July 5 for submission of bids, also called requests for qualification (RFQs).After RFQs, requests for proposal (RFPs), or the final bids, are invited.RFPs evaluate the bidder’s technical and financial credentials for executing an UMPP. These are invited after the RFQs have been submitted and the companies, who qualify the preliminary round on the basis of their networth and turnover, are invited to submit RFPs.

Power Finance Corporation (PFC) is the nodal agency for the UMPPs and forms a special purpose vehicle (SPV) for all these projects — the SPV acquires the land, provides water availability and coal linkage for the project.

The government has already allotted four UMPPs. Reliance Power has bagged three of the four UMPPs at Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh), and Tilaiya (Jharkhand), while Tata Power has been awarded the Mundra UMPP in Gujarat.The benefits of these projects are expected to be seen during the next plan period (2012-17).