The Government of India has begun the process of establishing four new ultra mega power projects (UMPP), with a combined capacity of 16,000MW, in the states of Bihar, Jharkhand and Odisha.

With an approximate investment of INR250bn ($4.13bn), the UMPP is a thermal power project of at least 4,000MW capacity, Press Trust of India reported.

The nodal agency for the UMPPs, Power Finance has commenced work on these projects in consultation with the state governments.

According to an official, one UMPP has been proposed in Bihar, one in Jharkhand and two in Odisha.

The official said: "Land for the proposed project in Jharkhand has been acquired. In the case of two UMPPs in Odisha and one in Bihar, the respective state government has identified sites."

"The UMPPs contracts will be awarded after the price bid submissions period ends."

The government has stated that the land for the proposed project in Jharkhand has been acquired while the other two state governments have identified suitable sites.

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The price bids for these proposed plants are yet to be submitted, after which the UMPPs will be awarded to industry players.

For the proposed projects, Tata Power, NHPC, NTPC, JSW Energy, Adani Power and Jindal Power have submitted applications.

For the Odisha project, NHPC, NTPC, Tata Power, JSW Energy, Jindal Power, Adani Power, Sterlite Infraventures, CLP India and Larsen & Toubro (L&T) had submitted applications.

Adani Power, NTPC, GMR Energy,CLP India, JSW Energy, Jindal Power, L&T and Sterlite Infraventures also submitted their bids for the Cheyyur UMPP in Tamil Nadu.

The final bids for Cheyyur and Odisha projects will open next month.