Power ministry sources told FE on Wednesday, The main objective of development of UMPPs is to obtain the lowest possible electricity tariff through competitive bidding and the measures such as one proposed by Orissa would run counter to the overall UMPP initiative. Recently, the power ministry has also offered 50% power to host states for UMPPs which in itself will be a big boost to the economy of the respective host states.
Power minister Sushilkumar Shinde in the recent communication has called upon the Orissa chief minister Navin Patnaik to intervene for the withdrawal of a condition to contribute 5% from the profit for peripheral development fund. Shinde has said that the Orissa government can insist on implementation of the national relief and rehabilitation policy and not go beyond it. However, sources said so far the Orissa government has not withdrawn its condition.
So far Sasan, Mundra, Krishnapatnam and Tilaiya UMPPs have already been awarded while the ministry has proposed to promote UMPPs in Orissa, Chhatisgarh, Tamil Nadu, Maharashtra and Karnataka. Besides, NTPC is planning a 4,000 mw of project in Orissa which is coal rich state.