Union Power Minister Sushil Kumar Shinde said on Monday that the government has decided to allow setting up of the tenth ultra mega power project through private sector participation in Tamil Nadu.
With decks being cleared for the second ultra mega power plant, Tamil Nadu will, as of now, be the only state to have two Ultra Mega Power Projects (UMPP) of 4000-megawatts capacity each.
Government has already identified Cheyur district in Tamil Nadu for setting up of the proposed UMPP.Tsunami hit, the Nagapattinam district of Tamil Nadu is likely to be chosen for the second UMPP in the state.
“The government will invite bids for Krishanapatnam UMPP in Karnataka by the end of this calendar year,” Shinde said.
Sasan in Madhya Pradesh and Mundra in Rajasthan are two of the ten UMPPs that have already been awarded to the winning bidders.
In his inaugural address at the 10th India Power Forum, Shinde conceded that capacity additions in the power sector had not got off to a sound start primarily on account of a lack of adequate manufacturing facilities in the country.
He said BHEL was working on expanding its capacity, which would have a positive effect on the power generation programme. Simultaneously, the government is ready to welcome private power equipment manufacturers, he added.
The government envisages adding about 100,000 MW of power capacity by 2012.
Shinde said the government was confident of achieving the 78,000 MW power generation target for the 11th Five-Year Plan that ends in 2011/12. “We may also exceed the target of 78,000 MW in the 11th Five-Year plan and this would be besides the capacity addition that is expected from the UMPPs the government has allowed through the private sector," he said.
Shinde also said the Centre will soon introduce a national hydro electricity policy to encourage private players in setting up hydel plants.
Addressing the Forum, Power Secretary Anil Razdan said that an integrated approach was necessary to meet energy needs.
Razdan said given the current demand-supply imbalance, the country was currently a “producer’s paradise”. “This situation has to change and the consumer must become a key player," Razdan said.