Environment ministry has given green nod for the 4,000- mw ultra mega power project (UMPP) at Bhedabahal in Orissa after more than six-months delay. “Orissa UMPP is cleared (by environment ministry). We are hopeful of receiving the documents from environment ministry soon,” power minister Sushilkumar Shinde told reporters at a news conference held by NTPC.

Bhedabahal would be the first project to come out of no-go area dispute after getting environment ministry’s nod. Companies such as NTPC, Tata Power, Reliance Power, Larsen & Toubro and Essar Power are eyeing UMPP projects. Another UMPP at Surguja in Chhattisgarh is waiting government’s clearance. Coal reserves of more than 600 million tonnes in 203 coal blocks are stuck because of clearance from environment ministry. These may attract an investment of around Rs 40,000 crore and facilitate 130,000 mw of power generation.

Power Finance Corporation (PFC), the nodal agency for UMPPs, started selling request for qualification documents for Orissa UMPP in June 2010. However, it had to defer dates for bid submission by more than three times as the projects hangs in limbo.

In the past, government has awarded four UMPPs in Madhya Pradesh, Gujarat, Andhra Pradesh and Jharkhand. Out of these, Reliance Power bagged contracts for three projects, while Tata Power got Mundra mega project in Gujarat into its kitty. Centre plans to set up 16 such UMPPs.