Bhedabahal mega power project cancelled!

ROURKELA: After hanging fire for 14 years, the much-hyped Ultra Mega Power Project (UMPP) at Bhedabahal in Sundargarh’s Sadar block has reportedly been cancelled. Reliable sources in the Power Finance Corporation (PFC) said the Board of Directors of Odisha Integrated Power Ltd (OIPL), a special purpose vehicle (SPV) formed to set up the Bhedabahal UMPP, recently decided to drop the project and has communicated the decision to the Ministry of Power.    

The OIPL decision has come as a huge blow for Sundargarh district which was hoping for a major investment through this 4,000 mega watt coal-fired green-field power project.  

In 2005-06, the Power Ministry had launched the UMPP initiative in multiple states and Odisha got three projects. Accordingly, the OIPL was incorporated in 2008 to act as a SPV for Bhedabahal UMPP and undertake the bidding process on behalf of the power procuring (beneficiary) states and obtain necessary clearances/consents. The Behdabahal UMPP with an estimated cost of around `29,000 crore was to come up on design, build, own and operate mode.

The first bidding in 2011 was cancelled midway. In 2017, the PFC had come close to hold rebidding, but the process was put on hold indefinitely. Sources said the IDCO had acquired around 3,300 acre of land for the main power plant at Lakahuda gram panchayat in Sadar block.

The Odisha Infra Power Ltd was formed in 2014 to represent Odisha and eight other power procuring States and certain allied activities were also carried out. But that too stopped with the states concerned stopping funding due to the uncertainty over the project.

Sundargarh MLA Kusum Tete said she had recently drawn attention of Odisha Energy Minister Pratap Keshari Deb towards the UMPP. The Minister had asked her to provide project details and assured to take up the matter at appropriate level. Tete further said in a reply to her letter in 2020, the Ministry of Power had stated that the project would come up.

“Land acquisition for the project was done several years back without proper rehabilitation and resettlement measures for the affected persons. Those facing displacement continue to suffer as development works could not be taken up in and around the site earmarked for the project,” the MLA added.

Sundargarh Collector Parag Harshad Gavali said the administration is yet to get any communication about cancellation of the UMPP. He refused to comment on the use of the acquired land in the event of project cancellation.

ROURKELA: After hanging fire for 14 years, the much-hyped Ultra Mega Power Project (UMPP) at Bhedabahal in Sundargarh’s Sadar block has reportedly been cancelled. Reliable sources in the Power Finance Corporation (PFC) said the Board of Directors of Odisha Integrated Power Ltd (OIPL), a special purpose vehicle (SPV) formed to set up the Bhedabahal UMPP, recently decided to drop the project and has communicated the decision to the Ministry of Power.     The OIPL decision has come as a huge blow for Sundargarh district which was hoping for a major investment through this 4,000 mega watt coal-fired green-field power project.   In 2005-06, the Power Ministry had launched the UMPP initiative in multiple states and Odisha got three projects. Accordingly, the OIPL was incorporated in 2008 to act as a SPV for Bhedabahal UMPP and undertake the bidding process on behalf of the power procuring (beneficiary) states and obtain necessary clearances/consents. The Behdabahal UMPP with an estimated cost of around `29,000 crore was to come up on design, build, own and operate mode. The first bidding in 2011 was cancelled midway. In 2017, the PFC had come close to hold rebidding, but the process was put on hold indefinitely. Sources said the IDCO had acquired around 3,300 acre of land for the main power plant at Lakahuda gram panchayat in Sadar block. The Odisha Infra Power Ltd was formed in 2014 to represent Odisha and eight other power procuring States and certain allied activities were also carried out. But that too stopped with the states concerned stopping funding due to the uncertainty over the project. Sundargarh MLA Kusum Tete said she had recently drawn attention of Odisha Energy Minister Pratap Keshari Deb towards the UMPP. The Minister had asked her to provide project details and assured to take up the matter at appropriate level. Tete further said in a reply to her letter in 2020, the Ministry of Power had stated that the project would come up. “Land acquisition for the project was done several years back without proper rehabilitation and resettlement measures for the affected persons. Those facing displacement continue to suffer as development works could not be taken up in and around the site earmarked for the project,” the MLA added. Sundargarh Collector Parag Harshad Gavali said the administration is yet to get any communication about cancellation of the UMPP. He refused to comment on the use of the acquired land in the event of project cancellation.