Eco issues delay bids for Sarguja UMPP in Chhattisgarh

Environment issues have once again delayed the invitation of bids for the 4,000 Mw Ultra Mega Power Project (UMPP) at Sarguja in Chhattisgarh. The preliminary bidding process for the project has been delayed by two months. Now the last date of submission of bids is on March 8, a power ministry official said. This is the fourth time the process has been delayed, Power Finance Corporation (PFC), the nodal body for the execution of UMPPs in the country had invited initial bids for the Chhattisgarh project in March, 2010.

The bidding process has got delayed four times till date as the Ministry of Environment and Forests (MoEF) is yet to approve mining from the coal blocks allotted for the project.

MoEF is yet to come clear on the subject of ‘go' and ‘no-go' areas for coal mining. MoEF classified no-go areas as the zones where mining activity could not take place as it would have adverse impact on the environment.

The Coal Ministry had allotted Hasdeo coal block in Chhattisgarh for the Sarguja UMPP.

Another such project at Orissa is likely to get MoEF clearance for its coal blocks.

The government has so far allotted four UMPPs.

Three have been bagged by Reliance Power - Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh), Tilaiya (Jharkhand). Tata Power bagged the Mundra UMPP in Gujarat.

These projects are part of government's ambitious plan to mitigate electricity shortages, and add to India's capacity addition initiative.

The government plans to add about 1,00,000 Mw of power.

The major chunk would be contributed by such projects.

Gujarat's new UMPP sites face environmental hurdles

Gujarat may have to be content with just one 4,000 mw ultra mega power project as the two other sites offered by the state for building such projects have not been found feasible by the power ministry due to environmental reasons. The state had identified two sites - one near Junagarh and another near Jamnagar-for setting UMPPs of 4,000 mw capacity each. "Junagarh is not possible, as it is near the Gir Forest area, and as far as Jamnagar is concerned, it is near the limestone mines and we have to receive permission from the Gujarat State Mining Corp ," a power ministry official said. "These two projects look unlikely....but let's see," he added.

At present, the country's largest private power producer, Tata Power, is executing the 4,000 (800x5) mw UMPP at Mundra in the state.The first 800 mw unit of this coastal project is expected to be completed during the current 11th Plan period (2007-12).

Power Finance Corporation (PFC), the nodal agency for these kind of projects, has already awarded four projects to the successful bidders. Reliance Power bagged three of the allotted four projects at Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand) while the Tatas won the Mundra project.

The government, which plans to add 1,00,000 mw of electricity in the upcoming 12th Plan period (2012-17), is relying on the contribution from these UMPPs. These projects are likely to be commissioned over a period of 4-5 years from now.

The invitation of preliminary bids for the two proposed projects at Bedabahal (Orissa) and Sarguja (Chhattisgarh) are stuck because of lack of environment clearance for the coal blocks allotted to the projects. Therefore, the power ministry would not finalise any other site in any other part of the country without obtaining the mandatory approvals from the respective authorities.