The Ministry of Power will soon link the proposed ultra mega power projects in Orissa and Tamil Nadu with a surplus coal policy.

The invitation for initial bids for the upcoming two 4,000 MW ultra mega power projects (UMPP), one each in both the states, will come soon and a decision on the surplus coal policy will be linked to it.

Surplus coal policy will enable the usage of excess coal from the mines allotted for a project to another project of the same company.

The projects are Bedabahal power plant in Orissa and Cheyyur power plant in Tamil Nadu. The Ultra Power project in Orissa is being developed by Orissa Integrated Power with an investment of Rs 16,000 crore. The power plant in Tamil Nadu is being developed by Coastal Tamil Nadu Power with an investment of Rs 18,000 crore.

The proposed move has also received approval from EGOM (Empowered Group of Ministers). Last month, EGOM cleared the proposal of amending the standard bidding documents for implementing the new Case-II thermal power plants including the 4,000 MW UMPPs. In Case-II thermal power projects, the location of the project and fuel to be used are already decided before the start of competitive bidding.