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Home News Power Sector News Mundra UMPP next unit to begin operations in August: Tata Power

Mundra UMPP next unit to begin operations in August: Tata Power

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Tata PowerTata Power on 04-05-2012 said it expects to commission the second 800-mw unit of its Mundra ultra mega power project (UMPP) in Gujarat in August this year. The company will import about 15 million tonnes of imported coal to run the Mundra and Trombay power plants. First unit of the 4,000-mw Mundra plant, country's first UMPP, was commissioned in March this year, Tata Power managing director Anil Sardana said on the sidelines of a CII conference.

The Mundra project has been successful in blending 50% poor grade coal with normal grade coal to lower costs, he said.

Tata Power bagged the Mundra project in 2007 on the basis of a tariff bid of Rs 2.26 a unit, but a change in the coal pricing policy in Indonesia has upset the cost structure of the project. The company owns coalmines in Indonesia. It imported about 5.5 million tonnes coal in 2011-12 for the Trombay project.

He said the company would look at acquiring fuel assets abroad. "Government needs to facilitate bilateral government to government deals on energy resources in overseas nations," he said.

Sardana said his company has challenged a government decision to allow diversion of coal from mines attached to Sasan UMPP. ""We have challenged cross-subsidisation of tariff from Sasan UMPP by another project. Had we known this earlier, we would have also bid low,"" he said.

The government recently decided against reviewing its decision to let Reliance Power use nine million tonne surplus coal from blocks attached to Sasan UMPP for another group project.

An Empowered Group of Ministers had in August 2008 given approval to Reliance Power to divert surplus coal from three blocks linked to Sasan UMPP in Madhya Pradesh to another 4,000-mw project at Chitrangi in the same state.

Source- Economic Times


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