Next Boom Power Sector..Plz advice Some Good Stock
Dear Kamlesh, Find an article in sptulisan.com. Here it is:
Sep 13, 2007 UMPPs - all talk no action? Plans are now afoot to make an addition to bridge the awning gap in the 11th plan target for capacity addition in the power sector, by adding on more 4000 MW ultra mega power projects (UMPPs), taking the total tally to 10. It is looking at setting up coal based ultra mega power plants.
This is an excellent move if implemented. But then when the existing ultra mega power plants themselves are yet to takeoff what is the point of making such grandiose announcements? A few days ago the Govt announced that it was axing four of its totally planned 9 UMPPs. Till now, only two UMPPs have been given the go-ahead - the Mundra project was awarded to Tata Power and the Sasan project to Reliance Energy.
Now there are only three UMPPs which are expected to open for bidding some time soon. The 4000 MW UMPP at Krishnapatnam in Andhra Pradesh has opened for bidding and the last date for submission of the bids wass 25th August but that has now been extended upto 30th October, 2007. The front runners for the project include REL, Tata Power (that had already bagged Mundra Ultra Mega Power Project in Gujarat), National Thermal Power Corporation, Lanco Infratech and Jaypee Power Limited. To make up for the delay caused by Sasan, the Govt hopes to award the project by September. Nothing has been finalised yet for the Tilaiya project in Jharkhand. And the UMPP in Jharsuguda , Orissa is also hanging in the air.
The deadline is the 11th Plan, whose timeframe is 2007-2012. And the Lok Sabha Elections are also scheduled to be held, on or before May, 2009. So we wonder, if these announcements, to take the total tally of the UMPPs to 10, is merely a political tactic or does it really have some meat to it?
