Now, states plan on ultra mega lines

MP, Karnataka, Maharashtra and UP plan competitive bidding.

After the Centre's ambitious ultra mega power projects, it may be the state governments' turn to develop power generation projects through an exercise similar to that of the ultra mega power projects.

In another development, Madhya Pradesh, Karnataka, Maharashtra and Uttar Pradesh have firmed up plans to invite bids for power projects through the competitive bidding route.

The Madhya Pradesh government plans to invite bids for projects with a capacity of around 2,000 Mw.

"A site at Jhajjar for setting up a 1,000 Mw plant has been identified and the expressions of interest will be called by mid-June. The other 1,000 Mw plant may be set up at Khandwa," power ministry sources told Business Standard.

Karnataka is inviting requests for qualification for setting up a 1,000 Mw project in the state. The Uttar Pradesh government is also considering developing power generation projects at Annapara D and Sonbhadra through the competitive bidding route.

In a meeting held between the power ministry officials and the representatives of the northern, western and southern states early this month, the ministry expressed dissatisfaction over the progress made by the states to develop power projects through the bidding route.

"In order to improve the power generation scenario in the country, Power Secretary RV Shahi has desired that the state governments initiate an exercise similar to the ultra mega power projects and procure power through the competitive bidding route," sources added.

The ministry has advised the state governments to develop projects where the procurer specifies the location and fuel.