Government plans to scrap four SPVs set up for UMPPs due to lack of interest from host states.

The government plans to scrap four special purpose vehicles (SPVs) set up for ultra mega power plants (UMPP) in Chhattisgarh, Karnataka, Maharashtra and Odisha due to lack of interest from the host states, a top government official has told ET.

He added that as the government is focusing on UMPPs at Cheyyur in Tamil Nadu, Bedabahal in Odisha and Banka in Bihar, the other projects could take years to come up. 'Keeping these running would only add to the expenditure. There is no point in spending on something which does not have any timeline,' the official said.

For the Chhattisgarh project, the government has already incurred a cost of Rs 75 crore. For the other projects, the government has so far spent from a 'commitment advance' of Rs 40 crore given by each state.

While the four host states have claimed they are power surplus and do not require a plant of such large scale as of now, land acquisition has also become a hurdle for these UMPPs. 'We do not have land for the Karnataka and Maharashtra projects. For the Odisha UMPP, no mine has been allotted so far,' the official said. These SPVs were set up around 2008-09 when the government launched the UMPP programme.

ET