Reported by Chinmaya Dehury
Bhubaneswar, Sep 14:
Notwithstanding the apprehension of industry body Association of Power Producers (APP) of a lukewarm response to bidding for the proposed Ultra Mega Power Project (UMPP) at Bedabhal in Sundargarh district, the Odisha Integrated Power Ltd (OIPL) has been authorized to undertake the bid process for selection of the developer for the 4000 MW UMPP.
“We understand that OIPL, a wholly owned subsidiary of Power Finance Corporation (PFC), is initiating the process of tariff based competitive bidding for selection of power developers for an UMPP with a capacity of 4000 MW in Sundargarh district through public private partnership (PPP) on Design, Build, Finance, Operate and Transfer (DBFOT) basis,” read the authorization letter forwarded by state Energy department to Gridco.
OIPL is the special purpose vehicle (SPV) formed to implement the project.
A memorandum of understanding (MoU) has been signed on September 5 by all the utilities, which have been allocated power from the Odisha UMPP by Ministry of Power. Gridco has been appointed as the lead utility to discharge the obligation for and on behalf of all individual utilities and OIPL appointed to act as authorized representative to undertake the bidding process for selection of the developer for the Odisha UMPP.
Recently, the Power Ministry had scrapped initial bids received from 20 power companies for setting up the 4,000 MW UMPP and decided to invite fresh bids in the next fortnight.
Soon after finalising the new standard bidding documents (SBDs) for upcoming power plants, Power Ministry will invite preliminary bids for the proposed UMPP in Odisha, sources said.
The industry body APP had said yesterday that the UMPP was likely to get a lukewarm response as land acquisition issues and lack of clarity on surplus coal usage remain big hurdles for private power generators.
“Frankly speaking, I don’t think the UMPP (Ultra Mega Power Project) is ready for bidding today because the land acquisition is yet to be done,” Director General, APP Ashok Khurana told reporters in New Delhi. He, however, added that the final decision lies with the companies.