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News:

Industry experts have hailed the draft bid documents for ultra mega power projects (UMPPs), saying the new structure is investor friendly as it moves back to build, operate & own model while providing for fuel cost pass through and easy exit.

Source:- ET

SNP Insight:

The new bid document will fetch the attention of the investors on the large scale as multiple discrepencies of the earlier model have been sorted out, further the new model provides annual escallation of the fuel charges which comes as the relief to the developers. However, it is not yet clear, how this model will rectify the issues related to various clearances and approvals due to which multiple projects were stuck in the past. For the time being the model can be seen as the revival measure for the UMPPs, trying to usher in more investments and competition in the market.

Source:- SNP Infra Research