The government today said that it has capped the number of ultra mega power projects (UMPPs) that a company can develop at three.
"There were many doubts in the minds of people about completion of UMPPs where a developer has more than one such project. In a bid to bring in more clarity, we have capped the number to three," Power Minister Sushilkumar Shinde told reporters on the sidelines of an award function here today.
Shinde said, "If a company is developing three UMPPs, after completing any one of it, it can bid for another such project."
Clarifying further, he said, "Here completion means fully commissioning of a project."
A power project is fully commissioned when its all units start commercial production.
About the requests for qualification (RFQs) for two more UMPPs, Shinde said, "The RFQs for the two more UMPPs are likely to be invited by the end of next month."
The minister further informed that the decision was taken at a meeting of the Empowered Group of Ministers (EGoM) on UMPPs, headed by the Finance Minister on January 15.
