Following is from a report in Business Standard.

Bishnu Dash / Kolkata/ Bhubaneswar April 17, 2009, 0:59 IST

The Centre plans to set up two new Ultar Mega Power Plants (UMPPs) in Orissa. Those projects are proposed to come up at locations closer to the sea and will have a generating capacity of 4000Mw each.

Though the locations have not been identified, five possible locations have been short listed for the purpose which are Kirtania (Balasore district), Dhamara (Bhadrakh district), Paradeep (Jagatsinghpur district) Astharanga (Puri district) and Ganjam (in Ganjam district).

A team of senior officials from the Power Finance Corporation (PFC) and Central Electricity Authority (CEA) were likely to visit the state to identify the locations soon, sources said.

These units will make use of the sea water for meeting their water requirement and the state will get 50 per cent of the power generated from the two proposed UMPPs. The Centre plans to set up 13 UMPPs in different states. This includes Tamil Nadu (2), Gujarat (2), Andhra Pradesh (2), Jharkhand, Maharashtra, Chhattisgarh and Karnataka, one each. Orissa was allotted one UMPP earlier at Sundergarh district.

Meanwhile, the exact location of the Sundergarh UMPP with an installed capacity of 4000 Mw is expected to be finalised soon. … Though the state water resources department has given conditional water allotment for the proposed project, the state has asked for creation of additional water reserves in certain sites.

However, the Centre is yet to agree to this proposal. Sources said, the Centre had agreed to bear the expenses for creation of additional reservoir capacity, but wanted the work to be taken up by the state government.

Besides, the Union government has not agreed to the Orissa government’s stipulations to spend five per cent of the net profit for the peripheral development of the area. It has sought waiver of this stipulation for the project. However, the Orissa government is reported to have expressed it’s unwillingness to waive off this condition for the project.