Sasan, Mundra ultra mega power projects to be awarded by Dec 31

New Delhi, Oct 23 (UNI) Sasan and Mundra, two of the slated seven Ultra Mega Power Projects of 4,000 MW capacity each, will be awarded to qualified bidders by December 31 this year, with the evaluation process beginning from November 22.

''Of the seven concieved ultra mega power projects, Sasan in Madhya Pradesh and Mundra in Gujarat, will be awarded by December 31. The evaluation of the tariff-based competitive bidding process for these two projects will be closed by November 22,'' Power Secretary R V Shahi told reporters here today.

He also said that two more projects will be awarded by March next year.

The necessary environmental and water clearances from the respective state governments have been obtained last week and acceptance by the Environment and Forest Ministry is also on the final stages for Sasan and Mundra, which are to be executed on Build-Own-Operate' (BOO) basis and expected to be operational by 2012.

Mr Shahi also said that the power transmission structure for these two projects, to be established by Power Grid Corporation of India Limited, is already in place.

Eleven firms, including Adani Exports, CLP Power (I) Pvt Ltd and Sumitomo Corporation, have qualified for the second round of bidding for the Sasan project, while 13 companies have been able to qualify for the Mundra project.

Some of the domestic bidders include Reliance Energy, Tata Power, NTPC, L&T, Essar Power and Jindal Steel and Power.

Twenty-two distribution companies covering nine states signed power purchase agreements with Sasan Power Ltd and Coastal Gujarat Power Ltd, the two special purpose vehicles (SPVs) for the projects, on the 9th of this month.

Delhi, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Uttar Pradesh and Uttaranchal will tap the benefits from the agreements envisaging utilisation of 8,000 MW.

According to the Power Ministry, these power projects will have scope for expansion and will add about 28,000 MW within a span of 7-8 years.

Such projects have been proposed to set up both at pitheads as well as coastal areas and the generating cost for each unit would be Rs 1.50 per unit. The fund requirement for the proposed projects is estimated to be around Rs 1,25,000 crore.

The Power Ministry last week received a request letter from three states including Tamil Nadu, Andhra Pradesh and Jharkhand, for setting up such projects within their geographical boundaries.

The ministry will shortly send a high power delegation of power experts to these states to identify proposed sites so that mega power projects are set up in the next five years, to accomplish the vision of the government to provide power for all by 2012, the Power Secretary said.

He also said that the government would focus on creating additional capacities on power generation through ultra mega power projects with 50 per cent imported coal.

Central Electricity Authority (CEA) Chairman Rakesh Nath said that the government had already finalised coal linkages for power projects to the extent of 37,000 MW that would come up in Eleventh plan period.

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