India: IND: MUNDRA ULTRA MEGA POWER PROJECT

Nonsovereign Project | 41946-014

Summary

The Project is to construct, operate, and maintain a 4,000 MW coal-fired power plant (5 units of 800 MW each) on a build-own-operate basis, incorporating supercritical technology.

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Consulting Notices

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Project Name IND: MUNDRA ULTRA MEGA POWER PROJECT
Project Number 41946-014
Borrower/Company COASTAL GUJARAT POWER LIMITED
Country India
Location Near Tundawanda Village, Mundra Taluka in Kutch district, in the state of Gujarat.
Approval Number 7276/2419
Type or Modality of Assistance
7276 Loan USD 450.00 million Committed
Strategic Agendas
Drivers of Change
Sector / Subsector Energy - Conventional energy generation
Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Juliette N. Leusink
Project Sponsor(s) THE TATA POWER COMPANY LIMITED
Description The Project is to construct, operate, and maintain a 4,000 MW coal-fired power plant (5 units of 800 MW each) on a build-own-operate basis, incorporating supercritical technology.
Objectives and Scope The Project was planned as the first to be implemented among the ultra mega power projects (UMPPs). The Government of India has envisaged 'Power for All' by 2012. In order to meet the capacity addition targets required to achieve the said objective, the Ministry of Power launched an initiative for facilitating the development of coal based UMPPs in India. Development of large-sized power projects can result in cheaper power through economies of scale. Based on supercritical technology, the Project is also expected to be more environment friendly than conventional subcritical generating units. They will contribute significantly in reducing future power shortages in the country.
Linkage to Country/Regional Strategy

Assist the Government's plan to achieve 'Power for All' by adding to installed capacity. Development of large-sized power projects can result in more economical power for end-users through economies of scale.

Develop and provide additional source of power to address constant power shortage particularly in the northern and western regions of India. The power generated by the Project will be supplied to the states of Gujarat, Maharashtra, Punjab, Haryana, and Rajastan.

Assist improving the country's environmental standards by promoting supercritical technology with higher thermal efficiencies and less CO2 emissions. The Government requires all UMPPs to be developed using supercritical technology which is still relatively new to the country. The Project will be one of the first private sector generators in India to apply supercritical technology.

Promote private sector participation in the Indian power sector.

Status of Development Objectives The Mundra Ultra Mega Power Project (UMPP) supported the Government plan to achieve 'Power for All' by 2012 by adding significant installed capacity. It currently caters to 2-3% of India's total power needs, as it supplies power to the states of Gujarat, Maharashtra, Punjab, Haryana, and Rajasthan. Based on supercritical boiler technology, the Mundra UMPP supports India''s economic growth and energy development in an environmentally sustainable manner. It is the most thermal efficient, fully operational power plant in India. Higher thermal efficiency results into lower fuel consumption, with a corresponding decrease in emissions. It is estimated that the plant uses about 13% less coal in a year, as compared to conventional subcritical plants. The Mundra UMPP's greenhouse gas emissions per kWh of energy generated is 750 grams of CO2, as compared to India''s national average of 1,259 grams of CO2 per kWh for coal-based power plants. This helps avoid 28 million tons of carbon dioxide emission over the plant's first 10 years of operations alone, on an assumption that the Project will continue to use certain grade of coal (Melawan).
Material Changes None.
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The key issues identified during the assessment of environmental impacts of the Project are: (i) air emissions; (ii) ambient air quality; (iii) coastal fumigation; (iv) seawater abstraction, (v) discharge of spent cooling water, (vi) ash disposal and (vii) biological and marine ecological impacts. The Project received environmental clearance from the Ministry of Environment and Forests (MOEF) on 2 March 2007 and corrigendum on 5 April 2007 based on the rapid environmental impact assessment. Subsequent to the receipt of the environmental clearance from MOEF, a comprehensive EIA was prepared and submitted to the MOEF as per the requirement of the environmental clearance. The environment clearance was supplemented with addendums by MOEF to address changes made in the Project. CGPL has established a Corporate Safety, Health and Environment (SHE) Group responsible for the implementation of environmental monitoring and evaluation program during both construction and operation of the power plant.
Involuntary Resettlement About 180 hectares of private land was acquired under the Land Acquisition Act, 1894 (amended September 1985). Compensation levels have been agreed through negotiated settlements and at rates several times higher than prevailing market rates. The project site is uninhabited. However, as there are some economic activities in the existing site (e.g. grazing) the project established gaushalas for those affected by the acquisition of grazing land and is implementing livelihood programs for several villages including assistance to fishing communities. Through its corporate social responsibility (CSR) program, CGPL is committed to ensuring that affected households and the local community substantively benefit from opportunities offered by the Project. Details of CGPL's CSR program are available at http://www.tatapower.com/cgpl-mundra/csr.aspx
Indigenous Peoples The Project is not expected to have adverse impacts on indigenous peoples.
Stakeholder Communication, Participation, and Consultation

To ascertain the views of the community and interested stakeholders, a public hearing on the Project was held on 19 September 2006 in compliance with Schedule-I of the Environmental Impact Assessment Notification No: 60 (E), 27 January 1994. The public hearing was attended by Coastal Gujarat Power Limited (CGPL), local officials and people from the villages surrounding the project area. The meeting discussed the Project, its potential environmental and social impacts, land acquisition, mitigation measures, and monitoring programs. All other concerns raised at the meeting were clarified and recorded in minutes. Further public consultations were conducted in villages as part of the preparation of the comprehensive EIA, land acquisition process and the Social Impact Assessment that forms the basis for the livelihood restoration program.

CGPL dedicated resources and continued engaging various stakeholders in a consultative process during construction and operation of the power plant. Peoples' response to community initiatives implemented by CGPL are documented in this publication: http://www.tatapower.com/cgpl-mundra/pdf/dialogue-stakeholders.pdf

Timetable for assistance design, processing and implementation
Concept Clearance 03 Sep 2007
Due Diligence 01 Nov 2007
Credit Committee Meeting 18 Feb 2008
Approval 17 Apr 2008
PDS Creation Date 25 Oct 2007
Last PDS Update 26 Sep 2014
Title Document Type Document Date
Mundra Ultra Mega Power Project Reports and Recommendations of the President Mar 2008
Mundra Ultra Mega Power Project Initial Poverty and Social Analysis Jan 2008

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Mundra Ultra Mega Power Project: Quarterly Environment and Social Monitoring Report (July-September 2014) Environmental and Social Monitoring Reports Jun 2015
Mundra Ultra Mega Power Project: Quarterly Environment and Social Monitoring Report (October-December 2014) Environmental and Social Monitoring Reports Jun 2015
Mundra Ultra Mega Power Project: Quarterly Environment and Social Monitoring Report (April-June 2014) Environmental and Social Monitoring Reports Dec 2014
Mundra Ultra Mega Power Project: Annual Environment and Social Monitoring Report (April 2013-March 2014) Environmental and Social Monitoring Reports Sep 2014
Mundra Ultra Mega Power Project: Quarterly Environment and Social Monitoring Report (January-March 2014) Environmental and Social Monitoring Reports Sep 2014
Mundra Ultra Mega Power Project: Quarterly Environmental and Social Monitoring Report (April-June 2013) Environmental and Social Monitoring Reports Mar 2014
Mundra Ultra Mega Power Project: Quarterly Environmental and Social Monitoring Report (July-September 2013) Environmental and Social Monitoring Reports Mar 2014
Mundra Ultra Mega Power Project: Quarterly Environment and Social Monitoring Report (October-December 2013) Environmental and Social Monitoring Reports Mar 2014
Mundra Ultra Mega Power Project: Quarterly Environment and Social Performance Report (January-March 2013) Environmental and Social Monitoring Reports Jan 2014
Mundra Ultra Mega Power Project: Annual Environment & Social Monitoring Report (April 2012 to March 2013) Environmental and Social Monitoring Reports Sep 2013
Mundra Ultra Mega Power Project: Quarterly Environment and Social Performance Report (October-December 2012) Environmental and Social Monitoring Reports Feb 2013
Mundra Ultra Mega Power Project: Annual Environment & Social Monitoring Report (April 2011 to March 2012) Environmental and Social Monitoring Reports Jan 2013
Mundra Ultra Mega Power Project: Quarterly Environmental and Social Performance Report (July-September 2012) Environmental and Social Monitoring Reports Dec 2012
Mundra Ultra Mega Power Project: Quarterly Environmental and Social Performance Report (April-June 2012) Environmental and Social Monitoring Reports Oct 2012
Mundra Ultra Mega Power Project: Quarterly Environment and Social Performance Report (January-March 2012) Environmental and Social Monitoring Reports May 2012
Mundra Ultra Mega Power Project: Quarterly Environment and Social Performance Report (October-December 2011) Environmental and Social Monitoring Reports Mar 2012
Mundra Ultra Mega Power Project: Quarterly Environment & Social Monitoring Report (July-September 2011) Environmental and Social Monitoring Reports Dec 2011
Mundra Ultra Mega Power Project: Annual Environment & Social Monitoring Report (April 2010 - March 2011) Environmental and Social Monitoring Reports Aug 2011
Mundra Ultra Mega Power Project: Quarterly Environment and Social Monitoring Report (April-June 2011) Environmental and Social Monitoring Reports Aug 2011
Mundra Ultra Mega Power Project: Annual Environment & Social Monitoring Report (April 2010-March 2011) Environmental and Social Monitoring Reports Aug 2011
Mundra Ultra Mega Power Project: Semiannual Environmental and Social Performance Report (October 2010 - March 2011) Environmental and Social Monitoring Reports May 2011
Mundra Ultra Mega Power Project: Quarterly Environment and Social Monitoring Report (October-December 2010) Environmental and Social Monitoring Reports Feb 2011
Mundra Ultra Mega Power Project: Quarterly Environment and Social Monitoring Report (July-September 2010) Environmental and Social Monitoring Reports Nov 2010
Mundra Ultra Mega Power Project: Quarterly Environment and Social Monitoring Report (April-June 2010) Environmental and Social Monitoring Reports Aug 2010
Mundra Ultra Mega Power Project: Quarterly Environment and Social Monitoring Report (January-March 2010) Environmental and Social Monitoring Reports Jul 2010
Mundra Ultra Mega Power Project: Annual Environment & Social Monitoring Report (April 2009-March 2010) Environmental and Social Monitoring Reports Jul 2010
Mundra Ultra Mega Power Project: Quarterly Environment and Social Monitoring Report (October-December 2009) Environmental and Social Monitoring Reports Mar 2010
Mundra Ultra Mega Power Project: Quarterly Environment and Social Monitoring Report (July-September 2009) Environmental and Social Monitoring Reports Nov 2009
Mundra Ultra Mega Power Project: Quarterly Environment and Social Monitoring Report (April-June 2009) Environmental and Social Monitoring Reports Aug 2009
Mundra Ultra Mega Power Project: Annual Environment & Social Monitoring Report (April 2008 to March 2009) Environmental and Social Monitoring Reports Jun 2009
Mundra Ultra Mega Power Project Resettlement Plans Sep 2008
Mundra Ultra Mega Power Project Summary Environmental Impact Assessments Nov 2007

Evaluation Documents

See also: Independent Evaluation

No documents found.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Mundra Ultra Mega Power Project: Frequently Asked Questions

1. What is the Mundra Ultra Mega Power Project and the role of Tata Power?

The Mundra ultra mega power project is a 4,000-megawatt (MW) coal-based power generation plant located in the port city of Mundra in the western state of Gujarat, India.

The project was competitively bid and awarded to Coastal Gujarat Power Limited (CGPL), a wholly owned subsidiary of the Tata Power Company Limited, India's largest private power utility. The project became fully operational in March 2013.

The project is crucial to helping solve chronic power shortages in India where about 400 million people continue to lack access to reliable electricity. The project provides electricity to about 16 million rural and urban-based domestic consumers across the country's western and northern regions.

The project currently provides around 2% of the national electricity supply, enabling the expansion of industry and economic activity, and creation of job opportunities in the region.

The plant uses supercritical boilers, one of the most energy-efficient coal-based power generation technologies available in the country, which reduce fuel consumption and greenhouse gas emissions.

Read more

2. What is ADB's role in the project?

ADB's role is as a lender providing finance to the Project. Other lenders include the Export-Import Bank of Korea, the International Finance Corporation, the Korea Trade Insurance Corporation, BNP Paribas SA and more than a dozen Indian lenders, led by the State Bank of India. ADB's investment included a direct loan to CGPL of $450 million in 2008.

3. What is an ultra-mega power project and why is it important?

To sustain economic growth, India needs to address its persistent power shortages by boosting its existing generation capacity. Recognizing this, the Government of India launched an initiative to develop several coal-based “ultra mega” power plants (UMPP), each designed to generate about 4,000 MW of additional power.

The government undertook project development activities (e.g., identifying potential sites, water supply, potential state electricity purchasers, power evacuation, etc.) before then competitively bidding and awarding the projects to private sector utilities for implementation. The intent was to reduce time and bottlenecks in the project development cycle to scale up power generation capacity at meaningful scale.

4. Why does ADB continue to support coal-fired power generation projects?

Improving access to energy is critical to economic growth and poverty reduction in India. Without sufficient power generation capacity, these efforts cannot be scaled up. Unreliable power supply is holding back development of industry and other economic activities, which create jobs and improve household income.

Coal-fired power generation projects can make an important contribution to a country's development if they are developed in a responsible and sustainable manner. ADB will selectively support coal-based power projects provided cleaner technologies are adopted and adequate mitigation equipment and measures are incorporated into project design.

Read more ADB Energy policy

In 2007 ADB received a request from the Government of India to support the implementation of the UMPP scheme, deploying energy-efficient supercritical thermal power technology. To promote the development of these plans in a responsible and sustainable manner through the private sector, ADB decided to share knowledge from other countries on similar projects and provide financing for one of the UMPP projects.

This assistance has been coupled with strong support for the development of indigenous renewable power generation (notably wind and solar power), both through the government and the private sector, promoting the diversification of sources and energy independence. It is hoped that the government can build on these standards for future thermal power projects even without ADB assistance.

5. What is the Accountability Mechanism?

ADB's Accountability Mechanism provides an independent and effective forum for people adversely affected by ADB-assisted projects. The Accountability Mechanism Policy provides a problem-solving function and a compliance review function.

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6. What is the Compliance Review Panel (CRP)?

The Compliance Review Panel (CRP) is a fact-finding body on behalf of the ADB Board of Directors (the Board) which investigates alleged direct material harm caused by noncompliance by ADB with its operational policies and procedures in any ADB-assisted project. The CRP reports to ADB's Board of Directors (the Board).

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7. What is the complaint about?

In September 2013, two villagers from Mundra (Gajendrasinh Bhimaji Jadeja and Harun Salemamad Kara), and Bharat Patel, the General Secretary of a nongovernment organization, Machimar Adhikar Sangharsh Sangathan (MASS), submitted a request for a compliance review of the project to the CRP. They raised concerns about the project's environmental and social impacts, including on migratory fishing communities.

The issues included livelihood impacts on fishermen, impaired access to fishing and fish drying sites, community health impacts due to air emissions, deterioration of water quality and fish populations, and destruction of natural habitats, particularly mangroves.

See more information on the complaint

8. What is the status of this complaint?

The CRP's final report on the project was released on 9 April 2015 outlining areas of noncompliance with ADB policies while at the same time, acknowledging other areas where ADB was compliant. In line with the timelines outlined in the Accountability Mechanism, an action plan for ADB to address the issues raised in the CRP report is being prepared by Management and will be submitted to the Board in June. Once endorsed by the Board, it will be publicly disclosed.

The details of the CRP's final report and the response from Management (on the CRP's earlier draft report) are available on the CRP website.