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Now, UMPPs to be included in power companies performance parameters

The development of ultra mega power projects (UMPPs) is set to get a fresh push, with the government directing the Power Finance Corporation to include such projects in the companies' performance parameters, a senior power ministry official told ET.
UMPPs in Cheyyur, Tamil Nadu; Bedabahal, Odisha and Banka in Bihar may be included in the performance parameters or targets in annual memorandum of understanding with the power ministry, according to a letter issued by the ministry, a copy of which was viewed by ET. Ultra mega power projects are handled by PFC Consulting Ltd, a wholly-owned subsidiary of the Power Finance Corporation, which is also responsible for inviting bids for various other projects in the sector.
"UMPPs were never included in a company's performance parameters because these projects are very unstable," a senior PFC official said, requesting not to be identified. Finance minister Arun Jaitley announced in the budget for 2015-16 that the government proposed to set up five new UMPPs of 4,000 mw each in the plug and play mode. "PFC is the nodal agency on behalf of government of India for bidding out of UMPPs.
Bidding out of the UMPPs is one of the important performance targets to be achieved by PFC," the letter said. However, the projects could not take off after tenders floated for the Cheyyur and Bedabahal UMPPs received tepid response from the private sector.
Source: ET