Power ministry planning to establish three more ultra mega power projects

Power ministry is planning to establish three more ultra mega power projects (UMPPs), with a capacity to produce 4,000 MW of electricity each, in Orissa, in addition to the nine projects already being planned. There are coal blocks in Orissa, where the projects were to come up on direct bidding. These projects could be stretched further through a special purpose vehicle to be promoted by the Power Finance Corporation.


UMPPs are projects with a capacity of 4,000 mw or more. Three UMPPs have already been awarded on the basis of competitive bidding. The contract for the Mundra UMPP in Gujarat has been awarded to Tata Power while the Sasan contract in Madhya Pradesh and Krishnapatnam contract in Andhra Pradesh have been awarded to Reliance Power. Each UMPP is estimated to cost Rs 15,000 crore. The cost of generation per unit is estimated at under Rs 2.