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thermal power development - Infraline

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Central electricity authority Annual Report 2009-10<br />

to be commissioned in 11 th Plan. The status<br />

of implementation of UMPP projects already<br />

awarded is shown in Annexure-6A.<br />

In addition to nine UMPPs originally<br />

identified, request has come from some of the<br />

State Governments for installation of additional<br />

UMPPs in their States. These are given below:<br />

i) Two Additional UMPPs of 4000 MW each<br />

in Orissa<br />

ii) Second UMPP in Gujarat- 4000 MW<br />

iii) Second UMPP in Andhra Pradesh- 4000<br />

MW<br />

In regard to four UMPPs in Chhattisgarh,<br />

Orissa, Tamil Nadu and Second UMPP of<br />

Andhra Pradesh, the sites have been finalized<br />

and the site related studies have been taken up<br />

by the consultants appointed by M/s Power<br />

Finance Consultancy Corporation Ltd. The<br />

bidding process for selection of developer for<br />

Chhaattisgarh UMPP has been initiated with the<br />

issue of Request for Qualification document on<br />

15.3.2010. The bidding process for remaining<br />

three UMPPs is expected to start in 2010. The<br />

sites for UMPPs in Maharashtra and Karnataka<br />

are yet to be finalized. The sites in Gujarat<br />

and Orissa for additional UMPPs are under<br />

investigation.<br />

Govt. of Andhra Pradesh have vide letter<br />

dated 12.3.2010 recommended 3 rd UMPP in<br />

Andhra Pradesh at Kakinada. CEA has requested<br />

the State Govt. to furnish the details of the site<br />

which is awaited.<br />

Five coastal sites offered by Govt. of<br />

Orissa for additional UMPPs were visited by<br />

CEA/PFC team. CEA has requested Govt. of<br />

Orissa for arranging a meeting at Bhubneshwar<br />

to finalise the site. Another site in Balangir Distt.<br />

of Orissa has been visited by CEA/PFC team on<br />

19.4.2010. Orissa Govt. has been requested to<br />

furnish certain details regarding land availability,<br />

water availability & other details. The same are<br />

awaited.<br />

6.3 Private Sector Participation<br />

With the enactment of Electricity Act,<br />

2003, a whole new system was evolved where<br />

private players were invited to be an active<br />

participant in the Power Sector. The Electricity<br />

Act, 2003 has created a legal framework for<br />

<strong>development</strong> of electricity supply industry through<br />

liberalized generation, market <strong>development</strong> and<br />

providing non-discriminatory open access to the<br />

generators and consumers. In order to achieve<br />

these objectives, the Government has issued<br />

National Electricity Policy and Tariff Policy. For<br />

the purpose of facilitating procurement of <strong>power</strong><br />

through competitive bidding, the Government<br />

has issued guidelines for tariff based competitive<br />

bidding. The Standard Bid Documents for<br />

procurement of <strong>power</strong> under long-term and<br />

medium-term Power Purchase Agreements have<br />

been notified for Case-I and Case-II bidding.<br />

Many States have invited bids for <strong>development</strong><br />

of <strong>thermal</strong> <strong>power</strong> projects through tariff based<br />

competitive bidding Case-II. Details of such<br />

Case-II tariff based competitive bidding<br />

projects totaling to 31,580 MW are shown in<br />

Annexure-6B. The Government has also set up<br />

Special Purpose Vehicle (SPV) under PFC for<br />

collective procurement of <strong>power</strong> on behalf of the<br />

distribution utilities by inviting tariff based bids<br />

for supplying <strong>power</strong> from Ultra Mega Power<br />

Projects. Procurement of <strong>power</strong> through tariff<br />

based competitive bidding does not require any<br />

upfront capital investment by the Government<br />

and the responsibility of mobilizing financial<br />

and technical resources for operating generating<br />

facilities vests with the project developer/<br />

independent <strong>power</strong> producer.<br />

The Private Sector has responded<br />

enthusiastically to the opening up of the <strong>power</strong><br />

market and a substantial amount of generating<br />

capacity is coming up through IPPs in coal, lignite,<br />

gas and hydro <strong>power</strong> projects. The Government<br />

is committed to carry this process forward. It is<br />

for the first time in history of Power Sector in<br />

India that Private Sector is showing keen interest<br />

"Energy Saved is Energy Generated"<br />

67

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