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Govt
not to reduce capacity of UMPPs
Government has already awarded three UMPPs of 4,000 MW each -- Sasan in Madhya
Pradesh and Krishna Patnam in Andhra Pradesh to Reliance Power, Mundra in
Gujarat to the Tatas.
The Government is unlikely to reduce the capacity of ultra mega power projects
(UMPPs), from the present 4,000 MW, on Asian Development Bank's suggestion,
according to a report.
The reports stated that ADB had asked the Ministry of Power to consider
reducing the size of UMPPs to 2,000 to 2,500 MW from current 4,000 so that
more international financial institutions could lend their support.
Government has already awarded three UMPPs of 4,000 MW each -- Sasan in Madhya
Pradesh and Krishna Patnam in Andhra Pradesh to Reliance Power, Mundra in
Gujarat to the Tatas. It has decided to set up three more UMPPs in Tamil Nadu,
Maharashtra and Orissa, reports added.
The reports stated that the UMPPs are high-value projects that need large
amount of finance and the domestic private power sector companies are not
fully equipped to take up such projects on their own.
All three of the UMPPs awarded so far (Mundra in Gujarat, Sasan in Madhya
Pradesh & Krishnapatnam in Andhra Pradesh) are expected to commission a few
units aggregating about 3,000 MW within the 11th five-year plan (2007-12).
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