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Six bidders to exit from two UMPPs

Wednesday, 18 Jun 2014
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Six bidders, out of a total of nine, have evinced unwillingness to submit their price bids for two Ultra Mega Power Projects (UMPPs) -- one in Odisha and another in Tamil Nadu, due to some issues in the bid terms.

The companies are: Adani group; CLP; GMR group; Jindal Steel & Power; JSW Energy; and Tata Power. All of these firms are members of the Association of Power Producers -- an umbrella organization representing a majority of private power firms in the country. The other three companies are: NHPC,  NTPC, and L&T.

The companies have shown unwillingness on the grounds that the terms of the standard bid document would make the projects unviable. These six companies are also pushing for a review of the government's DBFOT (design build finance operate and transfer) model.

The government in 2013, had eased standard bidding norms for the UMPPs. Power Finance Corporation is the nodal agency for UMPPs in the country. Each UMPP entails a capacity of 4,000 MW.

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