UPSCpedia: Scienopedia - Ultra Mega Power Plants (India)

• With India being a country of chronic power deficits, the Government of India has planned to provide 'power for all' by the end of the eleventh plan (by 2012)
  

  • The concept of Ultra Mega Power Project (UMPP) was taken up in 2005 by Ministry of Power. Initially 9 projects were proposed out of which 4 were pit-head projects based on indigenous coal and 5 were coastal projects based on imported coal.
• The UMPPs are seen as an expansion of the MPP (Mega Power Projects) projects that the Government of India undertook in the 1990s, but met with limited success. 

  • The Ministry of Power, in association with the Central Electricity Authority and Power Finance Corporation Ltd., has launched an initiative for the development of coal-based UMPP's in India.
• Special purpose vehicles, or shell companies, have been set up as wholly owned subsidiaries of the Power Finance Corporation Ltd. (PFC) in each of the above states to build, own, and operate ("BOO" in economic parlance) these plants. 

  • Special Purpose Vehicle (SPV) obtains various clearances, water linkage, coal mine allocation (for domestic coal based projects) etc. for the project. 
  • The SPV also initiates action for land acquisition in the name of the SPV, selects the developer through a tariff based competitive bidding process and finally transfers the SPV to the identified developer along with the various clearances, tie ups, etc.

• Current Status: 

  • As per the latest information provided by Central Electricity Authority (CEA), first unit of 800 MW of Mundra UMPP is expected in February, 2012.
  • Erection of boiler and power house building in respect of units 1, 2, 3 and 4 of Sasan UMPP have been started. The boiler foundation for unit 5 has been completed and is in progress for unit 6. The first unit is expected in January, 2013.
  • As per revised Power Purchase Agreement (PPA), the first unit of Krishnapatnam is expected in June 2013.
  • As per PPA, the first unit of Tilaiya UMPP is expected in May, 2015.
• The UMPPs in the States of Tamil Nadu, Karnataka, Maharashtra and additional UMPPs in the States of Andhra Pradesh, Orissa, Gujarat, Jharkhand and Tamil Nadu are contingent upon the availability of various requisite clearances including land and water availability from the State Governments/ Ministries.
• The problems being faced in this initiative are non-finalisation of sites due to local agitation, non-availability of water at pithead sites, forest related issues particularly categorisation of Go/ No-Go area, delay in environment and forest clearances etc.

• UMPPs at a Glance                                 

  S.No.	Particulars	No. of UMPPs
  1	Total UMPPs Envisaged	16
  2	SPVs Incorporated	12
  3	Awarded	4

• UMPPs awarded

  • Sasan Power Limited, Sasan UMPP, Madhya Pradesh  
  • Coastal Gujarat Power Limited, Mundra UMPP, Gujarat  
  • Coastal Andhra Power Ltd., Krishnapatnam UMPP, Andhra Pradesh  
  • Jharkhand Integrated Power Ltd., Tilaiya UMPP, Jharkhand

• Existing UMPPs:

  • Chhattisgarh Sarguja Power Ltd., Chhattisgarh UMPP
  • Orissa Integrated Power Ltd., Orissa UMPP, District Sundargarh 
  • Coastal Tamil Nadu Power Ltd., Cheyyur UMPP, Tamil Nadu
  • Tatiya Andhra Mega Power Ltd., Andhra Pradesh 2^nd UMPP
  • Sakhigopal Integrated Power Co. Ltd., Orissa Additional UMPP 1
  • Ghogarpalli Integrated Power Co. Ltd., Orissa Additional UMPP 2
  • Coastal Maharashtra Power Ltd. Maharashtra UMPP
  • Coastal Karnataka Power Ltd., Karnataka UMPP