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    An Overview of TATA MUNDRA UMPP

    CEL338 (Infrastructure Planning and management)

    Indian Institute of Technology Delhi

    Submitted by

    Amit Kumar Shivam Shah2011CE10327 2011CE10401

    Course advisor:

    Dr. K.C.Iyer

    PROFESSOR

    DEPARTMENT OF CIVIL ENGINEERING

    INDIAN INSTITUTE OF TECHNOLOGY,DELHI

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    TABLE OF CONTENTS:

    1. Power scenario in India 3

    2. UMPP scheme 4

    3. Tata Mundra UMPP-at a glance 8

    4. Problems faced by Mundra UMPP 10

    5. Positive impacts 12

    6. Power at a cost 17

    7. Conclusion 19

    8. Terminologies and abbreviations used 19

    9.

    References 20

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    1. POWER SCENARIO IN INDIA:

    India started off the electricity production with an average capacity of 1362 MW after

    independence, and now after 60 years a significant increase in the sector is noticeable with

    electricity lighting up the nooks and corners of the country. In spite of the 201637MW

    capacity of Indias power sector by the end of April 2012, an arduous journey of spanning the

    energy gap because of inflating energy demand lies ahead. During.the.year.2010-11, .our

    country encountered a power deficit of 8.5 percent and a top.shortage.of.9.8 percent.

    Presently, a need of 150GW energy is faced by India. Due to shortage of power supply the

    current deficit of 30GW is predicted to exaggerate to a mind boggling deficit of 70 GW by

    the year 2020.

    Maharashtra, Uttar Pradesh, Punjab, Haryana and Madhya Pradesh are the five major states

    that face the greatest power shortage. 10 to 12 percent of power shortage lingered on even

    though the capacity rose to 207006MW by August 2012. The peaking deficit also climbed to

    11% and above during this period.

    For the 12th Five Year Plan (2012-17) to achieve a GDP growth of 9%, an estimated

    additional capacity of 169815 MW power must be produced in the next decade. Only the

    establishment of large power generation capacity projects can support this gigantic desire.

    The need of reliability of Indian power industry on thermal sources for coping with the ever

    increasing demand, still dominates over the Governments initiative of electricity generation

    from renewable resources. Figure 1 shows the percentage wise contribution of the various

    sources to Indian power generation capacity.

    oil

    1%nuclear

    2%

    hydro

    19%

    renewable

    12%

    coal

    57%

    gas

    9%

    Figure 1: Fuel sources contributing to India's power generation

    capacity

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    This breakup of the fuel sources contribution is not expected to budge in the forthcoming

    years. Various reasons leads us to this conclusion, some of them are

    1. Limited availability and high cost of wind based generation makes this technology a

    mere sight for the large energy demand of developing India.

    2. Insufficient availability of Natural Gas makes the Gas-based power generation

    unviable for the current large scale demands. Also, the cost associated with it is

    substantial.

    3.

    Commercial sustainability of the renewable resources in power production is

    contentious even with high government subsidy of VGF.

    4. Large scale hydro power projects require government policies backing it and

    environmental issues associated make it difficult.

    Therefore the right choice of technology which is economically efficient and environment

    friendly had to be chosen. The substantial journey of meeting the energy crisis using the

    thermal power brings us to the landmark scheme initiated by the govt. in 2005 named UMPP.

    2. THE UMPP SCHEME:

    Ultra Mega Power Projects(UMPP) was a program introduced in 2005 by the Ministry of

    Power in association with the Central Electricity Authority and the Power FinanceCorporation to address the countrys lingering power deficits and to provide for the growing

    energy demands of the ever-increasing Indian population and the new culture of mass

    consumerism prevalent in the country. With the help of this scheme the government intended

    to overcome bureaucratic obstacles hindering the development of large thermal plants

    working in the country in order to achieve its objective of Electricity or all by 2012

    [1].The UMPPs can actually be seen as a successor or an expansion of the Mega Power

    Projects (MPP) that the Government undertook in the 1990s with limited success. In the first

    of the two stages that are involved in the UMPP program, the Power Finance

    Corporation(PFC) creates a shell company called a Special Purpose Vehicle (SPV) [refer to

    terminologies for details]. The purpose of SPV includes securing environmental clearances,

    acquisition of land and water, and obtaining commitments for coal, either domestic or from

    abroad. After the completion of these steps, private companies are given a chance to acquire

    the shell company under a process of competitive bidding, in the second stage. The bidder

    guaranteeing to sell power at the lowest levelised tariff (refer to terminology section for

    details) to the consumers is awarded the project [2].

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    The characteristic features of UMPPs include [1]:

    Use of the SPV

    Use ofsupercriticaltechnology (refer to terminologies for details) for increased fuel

    efficiency and to ensure reduction in greenhouse gas emissions;

    Allocation and sharing of power among multiple states typically with the help of

    state-owned electric utilities;

    Dedicated captive coal blocks (rather than coal linkages as seen in earlier programs)

    for projects located in the interior;

    Imported coal for coastal projects (For example Tata Mundra UMPP imports coal

    from Indonesia);

    Massive scale -typically 4000 MW.

    Estimated investment in each UMPP: approximately Rs. 16,000 to Rs. 20,000 crores

    Assigned through competitive bidding process.

    Developed on build, own and operate(BOO) basis (Terminology section)

    Governments responsibility: Provide land, water, coal blocks, environmental

    clearances and tie-up for power sale

    Private entitys responsibility: arrange funding, technological tie-ups, place orders for

    key equipment, execute and operate the project

    Originally in 2005, only nine projects were proposed, of which four were planned to be pit-

    head projects and the other five were coastal projects that would use imported coal. Later in

    2007 few projects had to be abandoned due to various reasons and later additional projects

    were proposed. So far, 16 UMPPs have been planned in various states including Andhra

    Pradesh, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Orissa

    and Tamil Nadu.

    The present status of the UMPP scheme with proposed project and location has been

    tabulated (Table 1):

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    State Plant Special

    Purpose

    Vehicle

    Owner MW Type Status

    Andhra

    Pradesh

    Krishnapatnam

    UMPP

    Coastal

    Andhra

    Power Ltd.

    Reliance

    Power

    3960 Coastal Deferred

    Andhra

    Pradesh

    Nayunipalli

    UMPP

    Tatiya

    Andhra

    Mega Power

    Ltd.

    Not yet

    awarded

    4000 Coastal Proposed

    Chhattisgarh Sarguja UMPP Chhattisgarh

    Sarguja

    Power Ltd.

    Not yet

    awarded

    4000 Interior Cancelled

    2013

    Gujarat Tata Mundra

    UMPP

    Coastal

    Gujarat

    Power Ltd.

    Tata

    Power

    4000 Coastal Unit 1

    Commissioned

    2012; Units 2-

    3 in

    construction

    Jharkhand Tilaiya UMPP Jharkhand

    Integrated

    Power Ltd.

    Reliance

    Power

    3960 Interior Early

    Development

    Karnataka Tadri UMPP Coastal

    Karnataka

    Power Ltd.

    Not yet

    awarded

    4000 Coastal Deferred

    Madhya

    Pradesh

    Sasan UMPP Sasan

    Power Ltd.

    Reliance

    Power

    3960 Interior Unit 1

    commissioned

    2013; Units 2-

    5 in

    Table 1: Overview of all the UMPP

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    construction

    Maharashtra Girye UMPP Coastal

    Karnataka

    Power Ltd.

    Not yet

    awarded

    4000 Interior Deferred

    Odisha Sundargarh

    UMPP

    Orissa

    Integrated

    Power Co.

    Ltd.

    Not yet

    awarded

    4000 Interior Proposed

    Odisha Sakhigopal

    UMPP

    Sakhigopal

    Integrated

    Power Co.

    Ltd.

    Not yet

    awarded

    4000 Interior Proposed

    Odisha Ghogarpalli

    UMPP

    Ghogarpalli

    Integrated

    Power Co.

    Ltd.

    Not yet

    awarded

    4000 Interior Proposed

    Tamil Nadu Cheyyur

    UMPP

    Coastal

    Tamil Nadu

    Power Ltd.

    Not yet

    awarded

    4000 Coastal

    Coastal

    Proposed

    As explained earlier 4 UMPPs have been successfully awarded (refer Table 2) but they

    continue to grapple with a gamut of challenges ranging from land acquisition (The landmark

    Land Acquisition, Rehabilitation and Resettlement Act, 2013 is expected to address this

    problem effectively), mine-related clearances, shortage of domestic coal supply and

    unprecedented increase in imported coal prices.

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    3. TATA MUNDRA UMPP:

    Coastal Gujarat Power limited (CGPL)- a SPV formulated on 10th February 2006 [4] for the

    establishment and operation of PPP project- Mundra UMPP, is the fully owned subsidiary of

    TATA Power. Under the BOO (Build Own Operate) model CGPL had fulfilled the

    buildcondition of the power plant with a capacity of 4000MW in 5 states or units with 800

    MW capacity each. As claimed by the company itself it is arguably the most energy-

    efficient, coal-based thermal power plant in the country, today.[5]

    3.1

    Location: This power plant is located in the Tunda Wand village which is close to the

    Mundra Taluk of the Kutch District in Gujarat. An actual satellite photograph of the

    power plant is shown in figure 2 [6], with 22.8158, 69.5281 being the exact

    coordinates

    Table 1: Overview of Four UMPP [3]

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    3.2

    Constituent Units: Five power generating units are commissioned till now and two

    more units are in the pre-permit stage.[7,8 and 9]. All these units use the supercritical

    technology from Japan. Table 3 shows the exact details of the seven units envisaged

    with their production capacity.

    Stage Unit number Installed Capacity Date of

    Commissioning

    1st 1 800 March 2012

    2n 2 800 July 2012

    3r 3 800 October 2012

    4t 4 800 January 2013

    5t 5 800 March 2013

    6t 6 830 Pre-permit

    development

    7t 7 830 Pre-permit

    development

    3.3Coverage Area: Power generated through these units would be serving mainly five

    states of the western and northern India- Gujarat, Maharashtra, Haryana, Rajasthan

    and Punjab. These states are currently facing peak electricity crisis and their ever

    increasing demands are quenched (not wholly) by TATA Mundra UMPP. Table 4

    Figure 2: Satellite photograph of the TATA

    Mundra power plant

    Table 3: Units Envisaged in TATA Mundra UMPP

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    shows the averaged amount of power distribution to the states which are engaged in

    PPA with the company.

    State Power received (MW)

    Gujarat 1805

    Maharashtra 760

    Punjab 475

    Haryana 380

    Rajasthan 380

    Non-PPA 200

    Total 4000

    PPA agreement of Rajasthan was terminated because of the non-compliance on

    payment security issue and some collateral issues.[10]

    3.4

    Technological Specification: All the units of this project use Super Critical Boiler

    Technology that gives an edge to the project both in terms of environmental

    sustainability and money. This technology uses 1.7 million tonnes of coal less as

    compared to other alternatives present to generate the same amount of power annually

    [11]. Doosan and Toshiba supplied the boilers and turbines respectively.

    3.5Financing of Project: The total estimated cost of the project was US$ 4.14 billion.

    Among all the banks and financial institutions that funded the project IFC contributed

    a very significant amount. $450 million fund as loan was granted and on top of that

    equity of $50 million along with syndication of about $300 million in terms of B

    Loans [12], was the contribution of IFC to the project.

    Additional funding of the project came from financial institutions like ADB, India

    Infrastructure Finance Company Ltd., Housing Urban and Development Corporation

    Ltd., Export-Import Bank of Korea, Oriental Bank of Commerce, Vijaya Bank, State

    Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Travancore, the

    State Bank of Indore and other local banks[10].

    4. PROBLEM FACED BY MUNDRA UMPP:

    4.1. Escalation of coal prices:

    Table 3: State wise allotment of energy produced by Mundra UMPP

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    International coal market for India has been unwavering considering the cost and accessibility

    for the former 4 decades. In the international market the bond for coal supply is for a short

    tenure, 5 years being the life for supply contract and for cost is even shorter (1 year). Ideally

    suited for catering to Indias demand are nation like Indonesia, Australia, and South Africa.

    Yet, over the time, nearly half of the international ties are formed with Indonesia due to the

    ease and better logistics involved and also due to cheaper cost incurred in mining.

    The issue of Regulation No.17/2010 on Guidelines on the Determination of the Reference

    Price of Mineral and Coal Sales by the Indonesian Ministry of Energy and Mineral

    Resources, in September 2010 ordered the coal and mineral producers to adhere to a

    regulated standard price for sale of minerals and coal, both domestic and international. This

    standardization of prices forced all the prevailing supply contracts to modificationaccordingly.

    Also Indonesia is hovering over the idea of levying export duty on coal and minerals and

    imposing additional constraints on low-grade coal exports in brevity. South Africa, for

    perseverance of coal for additional domestic use is debating over export restrictions. Green

    tax has been levied over exports increasing coal prices internationally by Australia.

    Ironically, our own blaringly high coal demands have flared up the coal prices of these

    nations. Also the demand generated from China has aggravated the global coal prices. As a

    result of these changes, the global coal market has grown very unstable.

    In the beginning Tata Power for Mundra UMPP imported coal with the original prices

    established in the bid tariffs. Indonesian coal mines were contracted for almost all projects

    proceeding under Tata Power because of the precipitous discount in comparison to the

    prevalent market prices. A severe blow to the financial terms of contract made the coal cost

    incurred in Mundra UMPP shoot up.

    Statistically, 150 to 200 percent record escalation of the imported coal prices are observed

    over the initial tariff agreed upon in the bidding process for its import.

    The Central Electricity Regulatory Commission (CERC) has received a request from the

    company for increasing the power tariff to around three rupees per Unit.[10]

    4.2. Protest by Citizens (May 2011):

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    MASS- Machimar Adhikar Sangharsh Sangathan (MASS) organised a united protest

    raising concerns of the local people, targeting the accountability of UMPP project and lack of

    appropriate mitigation measures. IFC- International finance Corporation, whose financing in

    Indian coal plats bearing high risk, was filed with the protest of the group. CAO - Compliance

    Advisor Ombudsman, an independent body which deals with the disputes and disagreements

    related to the investments made by IFC, accepted the complaint against Mundra-UMPP.

    Social as well as environmental issues were addressed by MASS. Their claim being that the

    special economic zone (SEZ) used by UMPP adversely affects the environmental aesthetics

    of the region damaging the fishing arena, marine life and the widely stretched farming

    grounds. Also, IFC was targeted and accused of neglecting an overall impact assessment

    before hopping on board providing loan. Social impact over the fishing communities whowere directly affected by the project were not even considered on the list.

    In June 2011, CAO was filed with complaint bearing a detail account of the distress of fishing

    communities, which rose alarming environmental issues also expressing the health risks and

    dislocation of the communities.

    5.POSITIVE IMPACTS

    Kutch, being situated in the western border of the country, has often seen a lot of foreigners

    entering and inhabiting there since time immemorial. It is the biggest district in the country

    comprising Anjar, Bhuj, Mundra, Mandvi, Lakhpat, Abdasa-Nalia, Bhachau, Gandhidham,

    Rapar, and Nakhatrana talukas.

    Mundra was selected as the location for the project the only taluka of Kutch district which

    was not devastated by the 2001 Earthquake. To re-develop the region a lot of incentives were

    given mostly in tax liabilities by the Gujarat Government for setting up new industries in

    order to industrialize the region and produce employment opportunities for the communities.It was during this time that CGPL (Coastal Gujarat Power Limited) was created in 2007 to

    regulate, guide, and collaborate in the developmental initiatives in the region. So, it can be

    out rightly be said that the very initiation of the Mundra UMPP Project was done with a

    commitment to proper engagement with the community and to understand their needs.

    The project influence area of 10 km radius includes Mandvi Taluka cluster and Mundra

    Taluka, each made up of about 10 villages, having about 80,000 people (in 2011). The

    following section illustrates the positive impacts of the project on these communities :

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    Understanding the importance of participation of community in any community oriented

    development initiatives, many affirmative steps were taken under 8 broad themes- education,

    health, drinking water, employability / income generation and livelihood, biodiversity, and

    environment, rural infrastructure development, community organization and institution

    building and rural energy(Table 4).

    The following section illustrates the initiatives taken by the project planners for the welfare of

    the community under each theme [5]

    5.1Income Generation and Livelihood:

    Before the initiation of project, the major issues concerning the local communities

    were lack of proper employment opportunities, lack of opportunities for higher

    education, loss of pasture land for feeding cattle, health problems, migration of skilled

    manpower, lack of opportunity for women to be part of income generation activities.

    Table 4: Positive Impact of TATA Mundra UMPP [5]

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    So the following income generating programs were launched by CGPL on the lines of

    Gandhian principles of self-reliance and self-sustainability of communities:

    Gaushala- to check the decline in area of pasture land available for feeding cattle.

    The project successfully built various centers that supplied fodder and erected two

    massive gaushala containing many sheds for storing fodder and many sheds for

    keeping cattle. This has led to increase in cattle population and subsequently the

    milk production and availability in the area.

    Project Utkarsh- successfully made groups of cattle-rearers in order to increase

    their bargaining power, to educate them on livestock rearing, to share the risk and

    investment needed.

    Various nutrition kits were provided to children, many ROs were set up to ensure

    safe drinking water, check dams established for effective water management.

    Project Sagarbandhu was rolled out for the welfare of the fishing community

    through development of ponds for them and by educating them on fish breeding.

    Kalaraksha program- Kalaraksha Trust was set up with the sole objective of

    promotion of handicrafts by the local artisans. Various fairs and exhibitions are

    organized to make people aware and hence preserve the art of these artisans.

    Vivekananda Research and Training Institute(VRTI) was set up to form groups of

    women and train them in activities like sewing, embroidery, tie and dry work etc.

    and to connect them to local markets.

    5.2. Rural Infrastructure Development

    This emphasized on the development of rural infrastructure like roads, schools,

    hospitals & dispensaries, sanitation units, public spaces, information technology

    networks and other village civic amenities to ensure self-reliance and self-

    sustainability of villages and to improve the standard of living of people. CGPL has

    successfully erected various community halls, childrens park, sports grounds, cattle

    rearing & animal husbandry sheds, check dams, and toilet facilities etc. which has

    registered significant improvement in quality of life of people.

    5.3. Drinking Water

    In the adjoining areas, the average annual rainfall is less than 200mm! Another

    problem is the high incidence of water borne diseases in the area and pollution in

    water. So availability of safe drinking water was one main social issues that the

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    project planners wanted to address right from the beginning of the project. Following

    initiatives have been taken by the project in this regards:

    CGPL initiated programs for watershed management and rainwater harvesting in

    the adjoining villages with collaboration from Through Water Solutions for

    conservation of water.

    Ponds have been deepened to increase availability of water in these villages.

    Project Swachh Jal has been launched in which various wells have been built to

    provide clean and safe drinking water in rural households.

    Various water purifiers have been provided for in public places. In the Jalmani

    program, CGPL has installed RO plants in schools and ensured proper complaint

    redressal and maintenance of the purifiers.

    Roof rain water structures have been constructed for rainwater harvesting

    People were made aware of drip irrigation techniques and large area of land were

    brought under drip irrigation system.

    Various wells have been recharged to ensure availability of drinking water.

    5.4 Education

    The region prior to the project was characterized by low literacy rate, low opportunity

    for higher education, lack of constructive learning environment and few skill

    development initiatives. Also very few government schemes like Universal Education

    (Sarva Siksha Abhiyan) were able to reach the people and that too with partial

    success. So the following steps were taken by CGPLin this regards:

    Teachers training programs have been started to improve quality of education.

    Project Sujaan has been launched which focuses on computer-oriented learning.

    This has been very successful in increasing the computer literacy of children and

    hence, has increased their skills.

    Project Siksha Sarthi- Under this, GGPL has provided educational kits to new

    entrants in the schools of the adjoining villages in order to increase the enrolment

    ratio and to reduce the drop out ratio of students. Here, all the three stakeholders

    namely, Government of Gujarat, industry (CGPL), and educational institutions put

    collaborative efforts for the welfare of the community.

    5.5. Community Organization and Institution Building

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    Institution Building encompasses not only structural reforms, but also capacity

    building and strengthening of existing institutions. It is very helpful in securing

    participation of communities which not only spurs the project development but also

    empowers these communities.

    VDAC has been established in the same lines of panchayats for grass-root level

    decision making, organization of people for effective planning and implementation of

    community development initiatives and to increase the bargaining power of villagers

    to profit from the government schemes. Other institute building initiatives include

    solar lighting, improvement of roads, etc.

    5.6. Safety and Health:

    The company has taken proper precautions to prevent any harm to any of its

    employees, contractors, engineers, and the people in the communities where they

    operate. They have also paid due attention to the improvement of health and hygiene

    of the surrounding region.

    The company has hired very experienced safety team to prevent any harm to its

    employees.

    Safety trainings have been conducted by the company.

    Proper assessment of the probability of hazard before the start of any activity.

    A dedicated medical facility has been established to look over the health of the

    people in the region.

    5.7. Environment and Biodiversity

    The very initiation of the project has started with the firm commitment by the

    government to bring ecological issues in the economic and development trajectory.

    The UMPP program, as explained earlier was started with the marked use of Super

    Critical Technology in the project. It is fuel efficient and less polluting than the

    prevalent coal-fired technologies.

    If we look at the statistics3, the greenhouse gas emission due to these technology is

    only 750 gm of CO2 / kWh which is far less as compared to the national average of

    1259 gm of CO2 / kWh for coal based power plants. This has led to huge saving in the

    use of coal. Other environment- friendly adopted in the project are:

    Highly efficient Electrostatic precipitators have been used in the project.

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    The height at which emitted gas is emitted has been kept at 275 m which prevents

    any negative impact at ground level

    Effluent and Sewage treatment plants have been built to ensure preventing any

    pollution of already scarce water resources.

    Dust control systems have been erected.

    Noise control initiatives have been taken.

    5.8. Rural Energy:

    The company has right from its initiation emphasized on promotion of sustainable and

    eco-friendly energy solutions for the village communities. Various initiatives for

    biogas projects have been taken under the landmark Annapurna project which

    involves distribution of biogas units in the adjoining villages. Various solar powered

    lights have been installed on boats to extend the fishing hours of fishermen.

    6. POWER AT A COST:

    Even when CGPL boasts of its all-round development and benefits to Mundra region,

    evidence of adverse effects over the society and environment of the project are reported.

    Following are the major concerns covering the findings of an investigation by an independent

    fact finding team [13].

    1. Levelling and clearing of the mud flats along the coast by the company, significant

    destruction of ecosystem by dredging creeks and natural estuaries so as to construct

    water channels and depletion of mangroves and large forest area of dry lands- all

    these facts make the companys working contentious.

    2. The fishing families experienced economic toll and degrading society, because of the

    loss of livelihood of these families. Cooling water expelled by the plants causing

    thermal pollution forced the aquatic life away; also the depleted mangroves adversely

    affected the density of fishes.

    3. Investigation team also found that outfall channel outlet of Mundra UMPP contain

    some frothiness that suggest the presence of chemicals which may have been

    generated due to some anti- fouling agent added before letting out the water. Also the

    effects include lowering of pH from ideal value and a significant decrease in

    dissolved oxygen level.

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    4. An estimated 12 million tonnes of coal usage by the CGPL generates about 4.5

    million tonnes of ash. Being on the coastal area the strong winds blow away the ash

    causing a huge nuisance in vicinity. Fishing community involving themselves in fish

    drying and salt production (Gujarat produces 72% of Indian salt) suffers a serious

    blow because of possible intoxication of these edible products.

    Also, the well known fact coal contains radioactive minerals which get accumulated

    in ash pose a serious threat of radioactive exposure to the animal and human life.

    5. As stated in the report, the third highest emitter of greenhouse gasses in India being

    CGPL is contributing to Global warming through an overwhelming amount of 30.796

    million tonnes CO2 emission yearly. Also gasses like SO2, whose emission from power

    plants can be minimized to a large extent, are causing serious health problems in the

    vicinity. Also the land allotted to Tata Mundra plant for establishment of Fuel Gas

    Desulphurization unit was not put to use, inviting all the more criticism.

    The blame does not fall on CGPL only for not following the safeguard policies; the financial

    institutions both domestic and international that were responsible for monitoring of

    environmental schemes neglected their duty during the construction phases. Also the reports

    prepared by consultants hired by International Financial Institutions namely IFC and ADB

    revealed their negligence and fraud in environmental aspect assessment of the project.

    Figure 2: Clearance of

    mangroves and mud flats by

    heavy machinery.

    Figure 3: Froth visible in the

    outfall channel water.

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    7. CONCLUSION

    The need for increase in power infrastructure has been increasing in India at a very brisk

    pace. The culture of mass-consumption and mass-consumerism that we have imbibed from

    our Western brothers has put a very high burden on the available fossil fuels in the country.

    Also, if we look at the development initiatives by the Government of India, we will find that

    it has been driven by economic factors and the environmental concerns have been completely

    estranged from the growth trajectory. According to planning commission by 2032, total

    installed capacity required would be 6.5 lakh Mega Watt!! These high numbers very

    effectively put the huge burden that our already dwindling resources are going to face. Thus,

    by adopting the supercritical technologies, Tata Mundra Ultra Mega Power Plant has started a

    paradigm shifting example where by the use of energy efficient and eco-friendly (less

    polluting) power generation techniques, the need for sustainable development has been put on

    the decision makers table.

    Also, the various community development and empowerment programs initiated by the

    project have successfully implemented the Gandhian principles of self-reliant and self-

    sufficient village.

    But in order to get a holistic perspective we need to look at the negative impacts that theproject has caused. The presence of a lot of similar projects in the district like Adani Power,

    the ecological impacts like air pollution and pollution of already scarce water resources has

    been very disastrous. Also, people have been displaced from their residence and their

    livelihood (fishermen community). Thus, there need to be a proper planning before the start

    of such projects with due consideration to the needs of the denizen and a mandatory

    regulatory body to supervise and guide such projects and to minimize their negative impacts

    on environment as a whole.

    8. TERMINOLOGIES AND ABBREVIATIONS USED:

    Figure 4: Dried fish getting

    contaminated with the fly ash

    from Mundra power plant

    nearby.

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    Special Purpose Vehicle (SPV)- A special purpose vehicle (SPV) is a company or legal

    entity which is formed through PPP concession agreement between Government and

    promoters or Joint Ventures to fulfil a particular objective and usually gets dissolved after

    its fulfilment.

    Ultra Mega Power Project (UMPP)-Large projects, usually 4000 MW in size, developed

    using SPVs.

    Supercritical technology: A technology that is more efficient than the existing

    technologies to harness energy through combustion of coal. Also, comparatively it is less

    polluting therefore being beneficial to environment.

    BOO: A contractual agreement whereby, project developer is authorized to finance,

    construct, own and operate and maintain an infrastructure facility. Levelised tariff- Tariff which is proposed at the time of bidding to decide a winner

    calculated by discounting 25 years tariff.

    IFC: International Finance Corporation

    ADB: Asian development Bank

    9. REFRENCES:

    1. http://www.sourcewatch.org/index.php/Ultra_Mega_Power_Projects_in_India#cite_n

    ote-policy-1

    2. http://www.sourcewatch.org/index.php/Ultra_Mega_Power_Projects_in_India#cite_n

    ote-Forbes-2

    3.

    http://www.slideshare.net/bagrivikash/mundra -umpp

    4.

    http://www.tatapower.com/media-corner/pressrelease-2012/press-release-19-jul-

    2012.aspx

    5. http://www.tatapower.com/cgpl-mundra/pdf/umpp-greener-future121015.pdf

    6. http://www.sourcewatch.org/index.php/Tata_Mundra_Ultra_Mega_Power_Project#Pr

    oject_Details

    7.

    http://www.tatapower.com/media-corner/pressrelease-2012/press-release-08-oct-

    2012.aspx

    8. http://www.tatapower.com/media-corner/pressrelease-2013/press-release-06-mar-

    2013.aspx

    9.

    http://www.moneycontrol.com/news/business/tata -power-synchronises-third-800-mw-

    unit-at-mundra-umpp_766254.html

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    10.http://www.sourcewatch.org/index.php/Tata_Mundra_Ultra_Mega_Power_Project

    11.http://en.wikipedia.org/wiki/Mundra_Ultra_Mega_Power_Plant#cite_note-8

    12.http://www.cao-ombudsman.org/cases/case_detail.aspx?id=171

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