NEW DELHI | March 31, 2016: The Coal Ministry has given in-principal approval to reallocate three mines for Bhedabahal ultra mega power project (UMPP) in Odisha.

"The Coal Ministry had on February 17 given in-principle approval to reallocate Meenakshi, Meenakshi-B and dip side of Meenakshi coal blocks for Bhedabahal UMPP in Odisha," said a source.

The ministry had taken back the coal blocks about 6 months ago because of some legal provisions with regard to the coal blocks allocation.

It had, however, assured the Power Ministry to give back the coal blocks, the source said.

PFC is the nodal agency for implementing UMPPs. Meenakshi, Meenakshi-B and the dip side of Meenakshi blocks were allocated in 2006 for the 4,000 Mw plant to be built at Bhedabahal in western Odisha's Sundargarh district, the source added.

The Power Ministry was planning to bid out three UMPPs, Cheyyur in Tamil Nadu, Bedabahal in Odisha and Banka in Bihar, in FY'16 to attract an investment of about Rs 90,000 crore.

However, last month the government had said that it may not be able to float tenders for three UMPPs entailing an investment of Rs 90,000 crore by March-end due to some legal glitch.

"(It) got delayed at the last minute due to some legal issues. We will sort it out. We will still try for March but if it is not done then we will do it in April," Power Secretary P K Pujari had told reporters last month.

The Power Ministry had also planned Deoghar and Tilaiya UMPPs in Jharkhand in FY'17 at an investment of Rs 60,000 crore.

In the last year's budget speech, Finance Minister Arun Jaitley had said the government proposes to set up five new UMPPs of 4,000 MW each in the plug-and-play mode.

(Source: http://economictimes.indiatimes.com/)