 "Naveen Patnaik writes to PM to fast track Bhedabahal UMPP")
"The UMPP was supposed to be taken up on a fast track mode for which Odisha as the host state has already contributed Rs 350 crore as sought by the project proponents of UMPP. However, the progress for development of UMPP is rather slow even when all the requisite support is provided by the state government", Patnaik said in his letter to Prime Minister Narendra Modi.
The UMPP proposed to generate 4,000 Mw power is estimated to cost Rs 30,000 crore. The UMPP is structured to be developed through two special purpose vehicles (SPVs), Odisha Integrated Power Ltd (OIPL) and Odisha Infra Power Ltd. Both are subsidiaries of Power Finance Corporation (PFC), the nodal agency for implementation of UMPPs in the country.
Patnaik has sought early initiation of the bidding process for the UMPP.
The bidding process is expected to take off after the Union Cabinet's approval to the revised standard bidding documents (SBDs) for UMPPs.
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 UMPP.
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 UMPP. 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 UMPP needs 3246 acres land in all that includes 2733 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 4,000 Mw UMPP. The annual requirement of fuel for the Bhedabahal UMPP has been estimated at 19-20 million tonne of coal.
