Govt gears up to allot power projects worth Rs 1.4 lakh cr

NEW DELHI: The power sector may attract a whopping investment of Rs 1,40,000 crore in the next three years, as the government gears up to allot projects of total capacity of 28,000 MW.

Power Finance Corporation, the state-owned company facilitating the development of ultra mega power projects (UMPPs) of 4,000 MW each, has identified seven locations across the country where these projects would come up.

"There are about seven more UMPPs to be developed over a period of time," a power ministry official said, adding that four such projects have already been awarded to the successful companies in the international competitive bidding.

The government has already alloted three UMPPs to private developers. Three UMPPs -- Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand) -- have been bagged by Reliance Power, while Tata Power is developing one such project at Mundra in Gujarat.

The initial bids for two more projects -- Sarguja (Chhattisgarh) and Bedabahal (Orissa) are in a limbo due to lack of environmental issues.

The government has identified two locations in Orissa to develop UMPPs, one each in Andhra Pradesh, Tamil Nadu and Maharashtra.

For generating one megawatt of power, an investment of Rs 5 crore is required, therefore the approximate cost of constructing an UMPP is Rs 20,000 crore.

Ministry of Power, which has envisaged adding 1,00,000 MW of electricity in the XIIth Plan Period (2012-17) is banking heavily on these projects.