Bidding Opens for Two Indian 4,000-Megawatt Ultra-Mega Power Plants

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Earlier this week, nine Indian power developers submitted their requests for qualification (RFQs) for the $4 billion, 4,000-megawatt (MW) ultra-mega power project (UMPP), which is to be sited at Bhedabahal in Odisha. The plant will be fuelled with domestic coal.

Initial RFQs for another 4,000-MW UMPP at Chyyur in Tamil Nadu, using imported coal, also closed this week. Bids for both projects will be scrutinized, after which those meeting bid parameters will be asked to submit the request for proposal (RFP) or the offer for tariff. The winning bidder(s) will have the cheapest electricity-generating rate. The project awards should be announced by the end of the current fiscal year.

The government claims that it is offering investment-friendly parameters for the project, and says that it has cleared the major regulatory hurdles. In August this year, revised standard bidding documents were given the go-ahead by ministers.

An official said that the fuel charge was no longer a bid parameter, which takes away most of the variable risks of the project. In addition, land, water and environmental clearances already have been acquired for the project.

India has awarded four UMPPs: Tata Power has one and Reliance Power has three. Only Tata's Mundra plant in Gujarat is fully operational.

For related information, see November 7, 2013, article - India's Largest Power Projects Seek Relief from Environmental Roadblocks; October 22, 2013, article - Two Ultra-Mega Power Projects Worth $8 Billion Could Bail Out Indian Manufacturers; and January 17, 2013, article - Tata Adds 1,600 Megawatts to 4,000-Megawatt Ultra-Mega Plant.

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