Centre drafts imported coal-based UMPP guidelines
To revive the private sector’s interest in power generation projects, the Ministry of Power released draft guidelines for awarding imported coal-based 4,000- megawatt (Mw) Ultra Mega Power Projects (UMPPs). The guidelines propose passing-through variations in input cost to the final consumer.
Also, to cushion buyers from fluctuating coal prices, the draft bid document suggests blending domestic with imported coal. For this purpose, the central government would facilitate coal supply for five years.
The UMPPs would be awarded under the plug-&-play model, i.e, the government would facilitate land, environment clearances and evacuation. The developer would set up the project, arrange imported coal and sell power (build-own-operate). The National Democratic Alliance government, in its maiden Budget in 2014, announced that it would auction four new UMPPs as plug & play projects.
The draft guidelines and bid document, prepared by a committee headed by Pratyush Sinha, former chief vigilance commissioner, are open for public comments till January 15, 2016.
The option of blending cheap domestic coal would be facilitated only when the cost of imported coal escalates by 10 per cent over the price quoted during bidding. To bring down fuel cost, blending of up to 30 per cent would be allowed.
Read full article: Business Standard
NEW DELHI: Tepid response from bidders amid depressed commodity prices and market conditions has forced the government to call off Read more
New Delhi: In its worst performance in seven months, output of the eight core sectors contracted by 1.3% in November Read more
Country's coal imports fell by 15 per cent to 132.3 million tonnes in the first 9 months of the current Read more
New Delhi: India is getting ready to open up commercial coal mining to private companies for the first time in Read more
