To meet India’s power demand, the Government of India has planned to provide power for all by the end of the eleventh plan. This would entail a creation of an additional capacity of at least 100,000 MW. Ultra Mega Power projects (UMPP) are a series of ambitious power projects planned by the Government of India. The Ultra Mega Power projects, each with a capacity of 4000 megawatts or above, are being developed with an aim to bridge this gap. The UMPPs are seen as an expansion of the MPP (Mega Power Projects) projects that the Government of India undertook in the 90’s but met with limited success. The Ministry of Power in association with Central Electricity Authority and Power Finance Corporation Ltd. has launched an initiative for development of coal-based UMPPs in India. These projects will be awarded to developers on the basis of competitive bidding .