Ultra Mega Power projects, each with a capacity of 4000 MW or above, are being developed with the aim of bridging this gap.
[2] Based on supercritical technology, 16,000 MW of capacity has been contracted through the competitive bidding process for UMPPs.
Special purpose vehicles (SPV) have been set up as wholly owned subsidiaries of the Power Finance Corporation for each UMPP that will be built.
The project is being developed with the intention of providing power to consumers at minimum cost.
Because of the huge size of these power plants, the cost of the electricity would be lower due to the economies of scale.