Pvt cos won't bid for UMPPs till norms change.

The leading private sector power players have come together deciding not to bid for upcoming ultra mega power projects (UMPPs) of 32,000 MW after the government decided to accept the sole bid of state-run NTPC for Rs. 50,000 crore Tamil Nadu & Orissa UMPP.

'All the private power producers have opposed the SBD process and have repeatedly sensitized the government about their inability to go ahead and bid due to sloppy and one sided clauses in the document making it impossible for the corporate to participate. Unless, the government agrees to change the objectionable clause relating to effective pass through of fuel price risk, the private sector will not be able to participate in upcoming UMPPs bids,' said CEO of a leading Mumbai based power firm.

NTPC's solo bid for 8000 MW UMPPs in Orissa and Tamil Nadu is likely to be cancelled as per government norms, a single bid cannot be considered valid, indefinitely delaying these projects.

Private players like Adani Power, CLP India, Jindal Steel & power, JSW Energy, Sterlite Energy and Tata Power decided not to submit bids. A bid evaluation committee headed by V K Shunglu, ex-Comproller and Auditor General of India would send its recommendations by January 5 to the ministry of power which would take the final call on the fate of awarding both UMPPs.

TOI