In December last year, the Union power ministry decided to cancel the bidding process for Odisha and Tamil Nadu UMPPs
Odisha has voiced its opposition to some changes proposed in the standard bidding documents (SBDs) for ultra mega power plants (UMPPs).
In the revised SBDs, the Centre was mulling to fix responsibility on the host state for timely completion of critical milestones like land acquisition and rehabilitation & resettlement (R&R). In case of delay in achieving these milestones, the host state would be held accountable and also be liable for penalty provisions.
“We are opposing the proposed changes to SBDs for UMPPs. Entire responsibility cannot be fixed on the host state for issues like land acquisition and R&R. This seems unjustified”, said a senior energy department official.
State energy minister Pranab Prakash Das recently wrote to the Union power ministry, flagging off Odisha’s concerns and reservations over the changes proposed to SBDs for UMPPs.
Non-finalisation of bidding terms by the central power ministry has pushed the Odisha UMPP to the brink of delay. The 4000 Mw UMPP is being set up near Bhedabahal village in Sundargarh district.
In December last year, the Union power ministry decided to cancel the bidding process for Odisha and Tamil Nadu UMPPs. The bidding process had initiated in 2012. The ministry instead, decided to have a re-look at the SBDs and constituted a committee for the purpose.
The power ministry’s decision to revise the SBDs stemmed from the pull out of the private players from the bidding process.
Private players, in prior communications with the ministry of power, had raised concerns on the design, build, finance, operate, and transfer (DBFOT) model for the UMPP. They argued that under the DBFOT model, the risk was not apportioned equitably as all losses go to the power producer while gains went to the procurer. Power Finance Corporation (PFC), the nodal agency for UMPPs, has formed a special purpose vehicle – Odisha Integrated Power Ltd (OIPL) for facilitating project execution in Odisha.
The Bhedabahal UMPP needs 3246 acres land in all that includes 2733 acres private land, 444 acres government land and the rest 69 acres revenue forest land. Total cost of procuring land has been worked out at Rs 718 crore. Compensation of up to 91 per cent has been disbursed to the affected families.
In addition to the compensation amount, the state’s land acquisition agency Odisha Industrial Infrastructure Development Corporation (Idco), has raised an additional demand of Rs 145 crore towards revised estimated cost and its administrative charges. Nearly Rs 120 crore has been collected from states listed as beneficiaries of the UMPP. Meenakshi, Meenakshi-B and dip side of Meenakshi coal blocks have been allocated for the 4000 Mw UMPP. The annual requirement of fuel for the Bhedabahal UMPP has been estimated at 19-20 million tonne of coal.
Central PSU Mineral Exploration Corporation Ltd (MECL) has been assigned the job of carrying out detailed exploration of the coal blocks and also preparation of the geological report.