Ultra mega power projects soon

Private firms invited to set up plants ranging between 5,000 and 10,000 mw capacity.

In a move expected to fast track power generation in the country, the ministry of power has decided to invite private sector players to develop "ultra mega power projects" in the country.

Each of these power plants is expected to generate between 5000 and 10,000 mw of power. The projects, all coal based, will be set up at coal pit-heads and along the coastline to facilitate imported coal-based plants.

Union Power Secretary RV Shahi announced this while talking to reporters on the sidelines of a power conference on Wednesday. He said the government was already working on four such projects to be set up through competitive bidding, and would invite global Expressions of Interest (EoI) by the end of the month.

Among the private players, Reliance Energy has already announced plans to develop a 12,000 MW coal based power project in Orissa, at an estimated cost of Rs 48, 000 crore. This would, by far, be the world's largest pit-head coal based power plant at a single location.

Shahi said that the government was talking to the coal ministry to tie up fuel linkages for the projects under consideration and said that this was expected to be worked out in the next 3-4 months time.

He said that the central government would set up an empowered group to evaluate the project bids and handhold the projects right upto the development stage.

All clearances including environmental clearances and land acquisition for the projects would be handled by the empowered group through Power Finance Corporation, Shahi said.

Shahi said that the move would help the country reach the targeted 650,000 MW of installed capacity by the 14th plan (2026-27). He said the power ministry was looking at a generation growth of 8 per cent per annum to reach this target.

Shahi said that 11th plan is expected to add 60,000 mw of additional power to grid, while the 10th plan will add 35,000 mw against the targeted 40,000 mw.

The shortfall Shahi said will be made up by expanding and bringing the the captive generation capacity in the country into grid. Shahi also said that state governments in the southern, northern and western states have been asked, and have agreed to, set up similar plants in the states with capacities ranging from 1000- 2000 mw.

He said that the states will also be inviting bids in 4-6 weeks. Senior Maharashtra state government officials however said that though there have been informal discussions on these projects, no clear cut guidelines are available and that they are awaiting the guidelines before inviting tenders.