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Home News Power Sector News Group of Ministers(GoM) may decide on how many UMPPs can one entity get: Shinde

Group of Ministers(GoM) may decide on how many UMPPs can one entity get: Shinde

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ShindeAhead of starting the bidding process for the next Ultra Mega Power project, Power Ministry will approach a Group of Ministers for advice on how many projects a company can be awarded. "We may approach GoM on this," Power Minister Sushil Kumar Shinde told PTI when asked if there could be a ceiling and if Anil Ambani Group, which already has bagged three of the four such 4,000mw projects, could bid again.    

He said the GoM might look into the subject of limiting the number of UMPPs to a single developer and added that "how much capacity one company has... What is the credibility of the entity... All these factors need to be looked into."    

Shinde, who had earlier said that there was no harm if a company gets 10 such projects, said that "this (clarity) is important as each project envisages an investment of a whopping Rs 16,000 crore or more for 4,000mw." As of now there is no provision for limiting any player in UMPP bidding.    

The ministry is all set to consider six more UMPPs in the next six months and the Requests for Qualification (RFQ) for two are expected soon.    

"Cheyyur in Tamil Nadu and Bedabahal in Orissa will come within six months," he added.Reliance Power has bagged three UMPPs — Sasan in Madhya Pradesh, Krishnapatnam in Andhra Pradesh and Tilaiya in Jharkhand.    

The company announced the financial closure for the Sasan project in April this year and its first unit is expected to come up during the XIth Plan period that ends in 2012. Reliance Power is likely to arrange finances for the Krishnapatnam project in the second quarter of the current financial year. The environmental clearance for the Tilaya UMPP in Jharkhand is yet to be obtained. "That is also our job, in 60 days environmental clearance should be given to the project," Shinde said.    

"My colleague Jairam Ramesh (who was earlier junior to Shinde in the Power Ministry) has assured me that he would do the needful to clear the project in two months," Shinde said.

Source- Business standard

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