Case Study on Mundra Umpp

Topics: Coal, Nuclear power, Infrastructure Pages: 22 (4006 words) Published: January 1, 2013
Adani Institute of
Infrastructure Management

Case Study on Mundra UMPP

Priyankar Gyan
September 13, 2012

Case Study on Mundra UMPP

Executive Summary
It is expected that 87 GW of power capacities need to be added over the next 5 years as compared to only 42 GW added in the previous 5 years, translating to a supply increase of 7.7 per cent CAGR between 2010-11 and 2015-16. The increased supply of power coupled with robust economic growth is expected to boost power demand at a compounded rate of 6.6 per cent from 2010-11 to 2015-16 vis-a-vis the previous 5-year CAGR of 6.4 per cent.

The Government has launched several new programmes and made many regulatory changes in order to replenish the huge demand-supply gap in power sector by attracting private players and increasing their participation. Ultra Mega Power Project (UMPP) is a series of ambitious power projects planned by GoI. The UMPPs, each with a capacity of 4000 megawatts or above, are being developed with the aim of bridging this gap. Based on supercritical technology, 16,000 MW of capacity has been contracted through the competitive bidding process for UMPPs.

Capacity addition has gained momentum over the last 2 years
Year-wise sector-wise capacity addition (conventional energy)

Source: CEA, CRISIL Research

For the successful implementation of the power expansion plan, it is essential that all the key inputs required are made available as per the schedule of their requirement for each Infrastructure Policy & Regulation

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Case Study on Mundra UMPP

individual power project. Since these are some of the major key inputs, an assessment of the approximate requirement for the 11th and 12th Plan power projects will be useful input for the manufacturers and suppliers. This case study provides an overview of UMMP model of power development broadly covering the following aspects: 

Scoping and Mapping out the Project Players
Mapping out the Project Structure
Issues in the Project Conception Phase
Project Shaping Process
Issues in the Construction Phase
Issues in the Operations and Maintenance Phase
Key risks and challenges

CGPL is India’s first UMPP, being developed by Tata Power and located in the SEZ area of Mundra Port in the state of Gujarat. The project is still under construction with the first two units of 800 MW having achieved the milestone of pre-scheduled completion. On the contrary, the project is also witnessing some unforeseen situations that have put a big question mark on the future of the project. The project is facing allegations of noncompliance to environmental and coastal norms and its operation has been seriously threatened by the coal supply problem.

Through this study, an attempt has been made to cover the topics that reflect upon the important issues in the project like collaboration between government agencies and the involved private players, various environment related issues, current fuel supply problem affecting the tariff, various policies and regulations applicable, role of external agencies, CSR initiatives, etc.

The power sector is undoubtedly fraught with multiple challenges and risks but it also provides one of the biggest avenues to participate in the development of India’s infrastructure. To overcome these, the players need to craft business models and strategies that will achieve the desired targets.

Infrastructure Policy & Regulation

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Case Study on Mundra UMPP

1. Project at a glance
1.1 Overview of UMPP
1.2 Site location
1.3 Background
2. How was the project conceived?
2.1 Project Initiation Steps
2.2 Preparatory work done by SPV under PFC
3. Bidding Process of UMPP
3.1 Awarding of CGPL project
3.2 Land Acquisition Process
4. Project Sponsor
5. Project Finance
5.1 Financial Structure
6. Involvement of Government Bodies/ Organizations
6.1 EPC firms/ Contractors involved in Project Execution
6.2 Insurance Providers
6.3 Role/...
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