Reliance Power's Sasan UMPP hits roadblocks-I March 2012 deadline for unit-I likely to be missed

In view of the uncertainty surrounding the availability of water for Reliance Power`s 3,960 MW Sasan ultra mega power project (UMPP), located in the Sidhi district of Madhya Pradesh, the Central Electricity Authority (CEA) has expressed its apprehension about the possibility of commissioning the 660 MW first unit of the project by March 2012. According to CEA, the Reliance Power-subsidiary, Sasan Power Limited, is unlikely to meet its commitment with regard to the commissioning of the first unit of the mega venture, despite the fact that boiler erection has already started at the project site and boiler hydro test is expected to be completed by July 2011. The central agency made these remarks during the recent high-level meeting of the Ministry of Power (MoP), that was chaired by the Power Secretary, P Uma Shankar, to review the status of the implementation of the prestigious UMPPs in the country.

Pertinently, besides the land acquisition issues hampering the project, securing a firm supply of water has also become a challenge for SPL to meet the proposed timelines for the UMPP. Reportedly, the public power major, NTPC, is still to accept SPL`s petition to provide water from the open discharge channel of NTPC`s Singrauli power station as an interim arrangement till the construction of the permanent water delivery system, as per the study conducted by Water and Power Consultancy Services (WAPCOS). Even RPL`s missives to the MoP, seeking its support on the matter, could not evoke desirable response, as the ministry maintains that the provision of water from NTPC`s facility is the sole prerogative of NTPC, and the UMPP-developer should not cite this as a reason for any delay in the implementation of the UMPP.

Further, the UMPP-developer has not been able to obtain the permission of the Uttar Pradesh (UP) Government controlled UP Jal Vidyut Nigam Limited (UPJVNL) for the water pipeline of the UMPP passing through the catchment of Rehar reservoir. In this case, the MoP`s direction to the UP Government to expeditiously provide the requisite permission is still to come to the aid of SPL.

As per the latest schedule proposed by SPL, the first two units of the project are due to be commissioned during March 2012 and June 2012, respectively, while the other units are expected to go on stream at successive intervals of three months until June 2013, when the entire project would be operational. RPL achieved financial closure for this project in April 2009.