PFC seeks commitment advance from Odisha for ultra mega power plants

Business Standard, Nov 28, 2012

Two more ultra mega power plants are to come up at Bhadrak and Kalahandi districts in Odisha

Jayajit Dash / Bhubaneswar Nov 28, 2012, 11:24 IST Power Finance Corporation (PFC) has sought commitment advance from the Odisha government on two more ultra mega power plants (UMPPs) proposed in the state, each with capacity of 4000 Mw. PFC is the nodal agency for implementation of UMPPs.

“Since Odisha is one of the nine beneficiary states for the two upcoming UMPPs, we have sought commitment advance from the state government. Each beneficiary state has to provide commitment advance of Rs 1 crore per 100 Mw. PFC has also asked the Odisha government to show its readiness for implementing two additional UMPPs proposed to be set up at Bijoypatna under Chandbali tehsil (Bhadrak district) and Narla in Kalahandi district”, said Satnam Singh, chairman and managing director, PFC.

He was speaking to media persons here on the sidelines of a financing agreement signed by PFC and Rural Electrification Corporation (REC) with Odisha Power Generation Corporation (OPGC).

P K Jena, state energy secretary said, “We have already provided commitment advance of Rs 13 crore for the first UMPP. Now that the sites for two additional UMPPs have been approved, we will be providing the commitment advance shortly.”

Since Odisha was to receive a combined share of 4000 Mw from these two UMPPs, it needed to provide commitment advance of Rs 40 crore.

It has been decided to set up the second UMPP at Bijoypatna in Chandbali tehsil of Bhadrak district and third UMPP at Narla under Kesinga sub-division in Kalahandi district. The sites have been selected after field visits by PFC.

Two subsidiaries- Sakhigopal Integrated Power Company Ltd and Ghogarpalli Integrated Power Company Ltd have been formed by PFC for executing these two UMPPs. The second and third UMPPs would contribute 2000 MW each to the state grid.

Meanwhile, PFC expects to float Request for Proposal (RFP) for the first UMPP in Odisha proposed at Bhedabahal in Sundergarh district in 2-3 months.

“We are awaiting some documents from the Union ministry of power after which we will float RFP for the Bhedabahal UMPP.

Bidding process for the first UMPP has already begun. The UMPP needs 3100 acres of land and PFC has formed a fully owned subsidiary - Odisha Integrated Power Limited - for executing this project. This UMPP would inject 1300 MW to the state grid.

Water for this UMPP has been allocated from the Ib river and check dams and barrages would be put up on the river for this purpose.

It may be noted that Meenakshi, Meenakshi-B and Dipside Meenakshi coal blocks have been alloted for the UMPP with a total reserve of 880 million tonne.