Thanks to a spurt in international coal prices due to new regulations in Indonesia and to cater to the possibility of future increases in raw material rates, the Power Ministry may tweak the bidding documents for upcoming ultra mega power projects.

The Power Ministry has discussed such a proposal with the Coal Ministry and Law Ministry and is awaiting their response.

“The Power Ministry has sought response over amendments in the bidding documents of the UMPP from the law and coal ministries… It would accommodate changes in international coal prices,” a Power Ministry official was quoted as saying.

The current bid document for UMPPs does not have any such provision, he said.

Tata Power, which is executing the 4,000-MW ultra mega power project at Mundra, in Gujarat, and Reliance Power, which is developing the Krishnapatnam UMPP in Andhra Pradesh, had reportedly requested the Power Ministry to allow them to increase the tariffs of these projects due to a rise in international coal prices.

Power Finance Corporation, the nodal agency for UMPPs in the country, has allotted four such projects to developers.

Reliance Power is developing the Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand) UMPPs, while Tata Power is engaged in execution of the Mundra UMPP, the first 800-MW unit of which is likely to be commissioned by January next year.

Related posts:

1. Status of Ultra Mega Power Projects ( August 2011)
2. Ultra Mega Power Projects – Current Status
3. Coal Requirement for Ultra Mega Power Projects
4. Orissa Ultra Mega Power Project to be Revived.
5. Sasan Ultra Mega Power Project – Details
6. Cheyyur – Ultra Mega Power Project (UMPP)
7. Mercados for change in power bidding rules
8. Why Tatas Stayed Away from Bidding For Solar Projects?