Ultra mega power project planned at Machilipatnam

Hyderabad: After the recent award of Krishnapatnam ultra mega power project (UMPP) to Reliance Energy consortium, the Andhra Pradesh Government, with the Centre’s consent, is considering to make out a case for another UMPP at Machilipatnam.

This would also be fired by imported coal and is being seen as an ideal slot to develop UMPP as the corridor along the coast is being developed to serve a dense industrial and manufacturing hub.

Addressing a press conference here on Wednesday, the State Energy Minister, Mr Shabbir Ali Mohammad, said “the Union Power Minister, Mr Sushil Kumar Shinde, was impressed at the pace at which we managed to secure clearances for 69 mandatory issues for setting up power project.”

Following this, he proposed that the State could consider setting up another UMPP provided it was ready.

This triggered the State administration to prepare a detailed project proposal which is being readied with the demand to allot 50 per cent of the power generated for the State.

The Krishnapatnam power would provide about 1,600 MW of the 4,000 MW to the State with a levellised tariff of Rs 2.37 per unit. The rest of the power generated from the plant would be a merchant power, the Minister said.

In fact, during a recent meeting with officials of Reliance Energy, they had proposed setting up additional 4,000 MW at the Krishnapatnam plant site.

However, nothing has been confirmed on this proposal, he said. Asked about the progress of the Hinduja power plant at Simhadri, a Government official said that their move to revive the project as a merchant plant is under active consideration with the State seeking about 25 per cent of the power generated.

The company is in the process of evaluating land acquisition issues.