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Ministry hopes to resolve Orissa UMPP issue by February

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BS Reporter Mumbai

The proposed 4,000-Mw ultra mega power project (UMPP) in Orissa, awaiting nod from the environment ministry, might get back on stream by the first half of February, Union Power Secretary P Uma Shankar said today.

He said the current discussions between the power ministry and Ministry of Environment and Forests (MoEF) were likely to conclude next month.

The last date for seeking bids for the country’s fifth UMPP had been extended to March 31 from January 31. One of three mines allocated for the pit-head power projects, Meenakshi B, was denied clearance by MoEF.

Once the talks over the Orissa project close, the power ministry would begin discussions with MoEF over another UMPP in Chhattisgarh. Coal blocks for this project, too, are awaiting a nod from the environment ministry.

 

The official also said the ministry was looking to address the issue of increased cost of coal imports which utilities were bearing currently due to a domestic coal shortage. “We have requested the coal ministry to ensure that the demand is met. We are also asking state generation companies to take steps to see that they go for longer term contracts for imported coal as opposed to yearly purchases,” said Shankar.

The power ministry also announced the National Mission for Enhanced Energy Efficiency (NMEEE), a part of the Prime Minister’s National Action Plan for Climatic Change. Under this, the ministry has identified 563 units across eight sectors, which will be mandated to adopt an energy efficient mechanism. The scheme would require investments worth Rs 30,000 crore over three years.

Power units cover a major chunk of this programme with around 146 units, with an investment of around Rs 20,000 crore. “The net effect on every unit is around Rs 150 crore, which is not very huge,” said Shankar. Companies and units under NMEEE will also receive energy saving certificates which can be traded. This programme will start from April.

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First Published: Feb 01 2011 | 12:38 AM IST

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