Ultra Mega Power Projects (UMPP) were launched to meet the growing needs of the economy, achieve power at low tariff, cater the needs of more than one states and to make swift capacity addition. These are very large sized projects, approximately 4000 MW each involving an estimated investment of about $ 4 billion. The projects envisage to substantially reduce power shortages in the country. The Government has accordingly taken the initiative for facilitating the development of a few ultra mega power projects capacity each under tariff based competitive bidding route using super critical technology on build, own and operate basis.
These projects will meet the power needs of a number of States/distribution companies located in these States, and are being developed on a Build, Own, and Operate (BOO) basis. In view of the fact that promotion of competition is one of the key objectives of the Electricity Act, 2003, and of the legal provisions regarding procurement of electricity by distribution companies, identification of the project developer for these projects is being done on the basis of tariff based competitive bidding. For facilitating the development of these projects, Power Finance Corporation (PFC) has been designated as nodal agency. PFC has to create a project specific Special Purpose Vehicle (SPV), which in turn will perform the bidding process for the project. Following are the salient features of this initiative:
· The Ultra Mega Power Projects would use Super Critical Technology with a view to achieve higher levels of fuel efficiency, which results in fuel saving and lower green-house gas emissions.
· Flexibility in unit size subject to adoption of specified minimum Supercritical parameters.
· Integrated power project with dedicated captive coal blocks for pithead projects.
· Coastal projects to use imported coal.
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