The ambitious ultra mega power project scheme has received a set back with centre cancelling the bids for the two proposed plants at Bedabahal (Odisha) and Cheyyur (Tamil Nadu) citing tepid private sector response. But, In both Cases, bids of public sector companies were rejected by the centre. The country’s largest thermal power producer, the NTPC, has emerged as the sole bidder for the Tamil Nadu project, NTPC and a NHPC-BHEL joint venture are in the fray for the Odisha UMPP.
If a public sector company is the only bidder then the project can be awarded. But if a private firm is the sole bidder, the tender can be scrapped as per bidding rules. But private companies and The Association of Power Producers (APP), a body representing the private firms, were lobying for cancellation tender and the centre accepted it.
“Unfortunately we did not get enough bids, we have had to scrap the process, its a process which was initiated before this government came in, I thought it was not prudent to keep extending the date without any possible solution,” Power and Coal Minister Piyush Goyal said.