The Odisha government has urged the Centre's Power ministry to initiate swift action on revised bidding for the 4,000 Mw Bhedabahal ultra mega power project (UMPP). Bids for some of the UMPPs, including the ones in Odisha and Tamil Nadu were delayed as approval for revised standard bidding documents is pending.
The UMPP proposed to generate 4,000 Mw power is estimated to cost Rs 30,000 crore. The huge coal-fired project is structured to be developed through two special purpose vehicles (SPVs) — Odisha Integrated Power Ltd (OIPL) and Odisha Infra Power Ltd, both being subsidiaries of Power Finance Corporation (PFC), the nodal agency for implementation of UMPPs in the country. Odisha as the host state has already contributed Rs 350 crore as sought by the project proponents of UMPP. However, the progress for development of UMPP is rather slow.
The Power ministry's decision to revise the SBDs stemmed from the pull out of the private players from the bidding process. Adani Power Ltd, CLP India Ltd, Jindal Power Ltd, JSW Energy Ltd, Larsen & Toubro Ltd (L&T), National Hydro Power Corporation Ltd (NHPC), NTPC Ltd, Sterlite Infraventures Ltd and Tata Power Ltd had responded to applications of Odisha Integrated Power Ltd (OIPL), a subsidiary floated by Power Finance Corporation (PFC) for Bhedabahal UMPP.
Private players, in prior communications with the ministry of power, had raised concerns on the design, build, finance, operate, and transfer (DBFOT) model for the UMPP. They argued that under the DBFOT model, the risk was not apportioned equitably as all losses go to the power producer while gains went to the procurer.
In the final SBDs, the clauses relating to fixing responsibility on the host state over land acquisition and rehabilitation & resettlement (R&R) have been significantly diluted. Now, a decision has been taken that bidding would be done only for those UMPPs where substantial progress has been achieved on critical parameters.
The Bhedabahal UMPP needs 3,246 acres land in all that includes 2,733 acres private land, 444 acres government land and the rest 69 acres revenue forest land.
Total cost of procuring land has been worked out at Rs 718 crore. Compensation of up to 91% has been disbursed to the affected families.
Meenakshi, Meenakshi-B and dip side of Meenakshi coal blocks have been allocated for the 4,000 Mw UMPP. The annual requirement of fuel for the Bhedabahal UMPP has been estimated at 19-20 million tonne of coal.