The Ultra Mega Power Projects were envisioned under the "Power for all"vision in 11th five year plan. However, so far only two UMPPs are producing power. Critically examine the issues that derailed this government initiative.
Ultra Mega Power Project (UMPP) is a series of ambitious power stations planned by the Government of India, each with capacity of 4000MW or above, with an aim Power for all in the country.
The power plants are thermal based power plants and the quality of Indian coal is very poor with low calorific value and high ash content. Also, many power plants do not have uninterrupted coal supply needed to run thermal power plants. Many Ultra power projects have still not been established because of problem of adequate land acquisition by state governments. For example- Tata Power’s UMPP at Mundra in Gujarat, based on imported coal is facing financial trouble for selling power at Rs 2.26 a unit as state government is finding it costly to buy.