The government's initiative of setting up ultra mega power projects in various locations of the country got underway with global EOIs floated for the first power plant of 4,000 MW in Madhya Pradesh.

Sasan Power Ltd -- a wholly-owned subsidiary of Power Finance Corporation -- has invited global expressions of interest from developers for the proposed 4,000 MW coal-based power project at Sasan (Tehsil: Singrauli, Dist: Sidhi) in Madhya Pradesh. The selected entity will develop the project on BOO basis.

SPL will undertake preliminary studies and obtain necessary clearances (fuel, land, water, power selling tie-up, etc.) prior to awarding the project to the successful bidder. The award of contract will be done on tariff-based competitive bidding.

For full tender details, click here.

Background: In January 2006, the Union power ministry proposed to set up five ultra mega power projects (capacity 4,000 MW, each) in Madhya Pradesh, Chhattisgarh, Karnataka, Gujarat and Maharashtra. These projects would run on imported coal and would be coast-based, except in MP and Chhattisgarh.

The government has targeted to appoint developers for each of the five projects by December 2006. By end-February 2006, the five shell companies (wholly owned subsidiaries of Power Finance Corporation) would be registered with the Registrar of Companies.

In Maharashtra, the project was proposed to come up at Dhopave in the Ratnagiri district. However, the state later proposed to change the project site to Vijaydurg in the adjoining Sindhudurg district, due to potential land acquisition problems at Dhopave.

Ref: ultramega5