Govt to decide fate of NTPC bid for projects in Odisha, TN

Coal and power minister Piyush Goyal is likely to hold a meeting on Monday to take a call on whether the government should accept the sole bid of NTPC for the proposed ultra-mega power projects (UMPPs) in Odisha and Tamil Nadu (TN) as all private sector companies have pulled out of the bidding process.

Private sector players, including Adani Power, CLP India, Jindal Steel & Power, JSW Energy, Sterlite Energy and Tata Power, had participated in the first round of bidding for both the projects. However, they withdrew their bids on the ground that they could not arrange finances due to the terms set for these projects.

Consequently, NTPC has emerged as the sole bidder for the TN while the public sector power giant and a NHPC-BHEL joint venture are in the fray for the Odisha UMPP.

A senior official said that NTPC has emerged as the sole bidder for the 4,000 MW Cheyyur project in TN, which entails an investment of Rs 25,000 crore. According to exiting norms, if a PSU is the only bidder, it can be awarded the project, but if a private firm is the sole bidder, fresh bids have to be invited for the project.

The final price bids for a similar 4,000 MW project at Bedabahal, Odisha, will be opened on January 7. The pithead project is likely to involve an investment of about Rs 24,000 crore. The Association of Power Producers had written to the power ministry stating that the private companies are not in a position to set up these plants.