Govt to decide fate of Odisha, Tamil Nadu UMPPs soon.

After the withdrawal of private players from the bidding process, the government will soon decide whether to accept the sole bid of NTPC for the proposed ultra mega power projects in Odisha and Tamil Nadu.

Power Minister Piyush Goyal will hold a meeting in this regard.

Private firms that had participated in the first round of bidding for both the projects had withdrawn their bids, citing difficulties in securing finances for these projects.

As a result, while state-owned NTPC had emerged as the sole bidder for the 4,000-MW Cheyyur project in Tamil Nadu, NTPC and a NHPC-BHEL joint venture were in the fray for the Odisha UMPP. The Cheyyur plant would cost Rs. 25,000 crore.

'If a public sector company is the only bidder then it is awarded the project. But if a private firm is the sole bidder, the tender is scrapped,' said a source. Among the private players in the fray were Adani Power, CLP India, Jindal Steel & power, JSW Energy, Sterlite Energy and Tata Power.

The price bids for a similar 4,000-MW project at Bedabahal in Odisha will be opened on January 7. The pithead project is likely to cost about Rs. 24,000 crore.

Association of Power Producers (APP), a body representing the private firms had written to the Power Ministry explaining the private companies' inability in setting up the plants.

APP also said that the DBFOT (design, build, finance, operate and transfer) model is not feasible for these UMPPs. UMPP is a coal-based power project of 4,000 MW generation capacity.

BS