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India plans to build enough ultra-mega power projects (UMPP) to increase its electricity generating capacity some 28,000 MW by 2017. During the next three years, the Power Finance Corporation Limited (PFC) will invest nearly $32 billion (USD) to start seven new projects that will complement the four UMPPs already underway. Industry analysts estimate that each power generation facility will cost between $3.2 billion and $4.3 billion, with each 1 MW of capacity costing nearly $1.1 million.
Recently, the PFC was forced to halt work on at least one UMPP after India's Ministry of Environment and Forests withheld key environmental approvals. The agency's call for additional study about imported coal has delayed biding and construction at the UMPP in Tamil Nadu, but is not expected to affect work at two other power generation facilities. Still, meeting the government's ambitious goals means that India will look to coal for over 50% of its power generation needs.
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Source: iGovernment
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