Ultra Mega Power Projects (UMPP) are a series of ambitious power projects planned by the Government of India. With India being a country of chronic power deficits, the Government of India has planned to provide “power for all” by the end of the Eleventh Five-Year Plan (2007–2012). This would entail the creation of an additional capacity of at least 100,000 MW by 2012. The Ultra Mega Power projects, each with a capacity of 4000 MW or above, are being developed with the aim of bridging this gap.
The UMPPs are seen as an expansion of the MPP (Mega Power Projects) projects that the Government of India undertook in the 1990s, but met with limited success. The Ministry of Power, in association with the Central Electricity Authority and Power Finance Corporation Ltd., has launched an initiative for the development of coal-based UMPP’s in India. These projects will be awarded to developers on the basis of competitive bidding
Based on supercritical technology, 16,000 MW of capacity has been contracted through the competitive bidding process for UMPPs. The average tariff for these projects is in the range of 2-3 per unit which is much lower than the recent cost plus tariffs. The first UMPP, developed by Tata Power at Mundra, Gujarat has been commissioned and contributes 4,000 MW in power to the northern grid