Mundra follows Sasan in delays

The dark shadow of the Sasan ultra mega power project seems to be creeping in on the Mundra ultra mega power project too, where some key deadlines have been missed.

Both the 4,000 Mw projects moved on similar bid-deadlines, and letters of intent (LoI) were awarded to the winning bidders "" Tata power for Mundra in Gujarat and Lanco-Globeleq for Sasan in Madhya Pradesh "" on December 28, 2006.

The power purchase agreements (PPA) were to be signed within 60 days of getting the letter of intent (LoI) i.e. by February 26. Tata Power has not yet done that. It has also not initiated the process of merging the shell company set up to pilot the project "" Coastal Gujarat Power Ltd (CGPL) "" with itself. 
 

ULTRA MEGA POWER PROJECTS
Location	Fuel
Sasan (Madhya Pradesh)	Pithead coal
Mundra (Gujarat)	Imported coal
Krishnapatnam (Andhra Pradesh)	Imported coal
Near Tilaiya village (Jharkhand)	Pithead coal
Akaltara (Chhattisgarh)	Pit-head coal
Tadri (Karnataka)	Imported coal
Girye (Maharashtra)	Imported coal
Orissa	Pithead coal
Cheyyur (Tamil Nadu)	Imported coal

According to an official at CGPL, the PPA would be signed "shortly", though he declined to give a specific date. He said that the reason was due to a delay in statutory clearances ( read tie-up of inputs, linkages, water, land and power selling arrangements, environmental clearance) to be taken from the state government.

Tata officials were not available for comments.

Tata Power has given a schedule of about 48 months for building the project in five units of 800 Mw each. The financial closure is expected around August.

Meanwhile, the imported coal based 4,000 Mw ultra mega power project at Kishnapatnam in Andhra Pradesh is proceeding on set timelines, as of now.