"The Union power ministry has revised the standard bidding documents (SBDs) for UMPPs and they are now awaiting the Cabinet's approval. The approval may come anytime", a senior government official told Business Standard.
The Bhedabahal UMPPs estimated to cost Rs 30,000 crore and is coming up on over 3000 acres of land. Odisha has also proposed the establishment of another UMPPs at Gajamara in Dhenkanal district, the site originally selected for a 1600 Mw super thermal power plant by NTPC.
The power ministry's decision to revise the SBDs stemmed from the pull out of the private players from the bidding process. Adani Power Ltd, CLP India Ltd, Jindal Power Ltd, JSW Energy Ltd, Larsen & Toubro Ltd (L&T), National Hydro Power Corporation Ltd (NHPC), NTPC Ltd, Sterlite Infraventures Ltd and Tata Power Ltd had responded to applications of Odisha Integrated Power Ltd (OIPL), a subsidiary floated by Power Finance Corporation (PFC) for Bhedabahal UMPPs.
Private players, in prior communications with the ministry of power, had raised concerns on the design, build, finance, operate, and transfer (DBFOT) model for the UMPPs. They argued that under the DBFOT model, the risk was not apportioned equitably as all losses go to the power producer while gains went to the procurer.
In the final SBDs, the clauses relating to fixing responsibility on the host state over land acquisition and rehabilitation & resettlement (R&R) have been significantly diluted. Now, a decision has been taken that bidding would be done only for those UMPPs where substantial progress has been achieved on critical parameters.
The Bhedabahal UMPPs needs 3,246 acres land in all that includes 2,733 acres private land, 444 acres government land and the rest 69 acres revenue forest land. Total cost of procuring land has been worked out at Rs 718 crore. Compensation of up to 91 per cent has been disbursed to the affected families.
Meenakshi, Meenakshi-B and dip side of Meenakshi coal blocks have been allocated for the 4000 Mw UMPPs. The annual requirement of fuel for the Bhedabahal UMPPs has been estimated at 19-20 million tonne of coal.
Besides Bhedabahal, the state government has selected Gajamara as the site for next UMPPs. The site was originally selected for 1600 Mw super thermal power plant by NTPC. However, lack of coal linkage impeded the project's progress.