"The Request for Qualification (RFQ) for 4,000 MW Chhattisgarh UMPP issued on March 15, 2010 is withdrawn," PFC said in a notice posted on its website.
PFC (Power Finance Corporation) is the nodal agency for UMPPs.
According to sources, the proposal to set up the UMPP in Chhattisgarh has been dropped as the coal blocks for the proposed project fall under dense forest area and will impact the environment adversely.
However, there was no official information about the reason for the withdrawal notice.
The process for invitation of initial bids for the Surguja UMPP has been delayed several times in the past due to lack of environment clearance for the allotted coal mines.
Ministry of Environment and Forests had classified the Hasdeo-Arand coal blocks, allocated to the Surguja plant, as no-go which meant that mining cannot take place in those mines as it may cause damage to the environment.
However, a committee headed by Planning Commission Member, B K Chaturvedi, in its report expressed reservations on the legal sanctity of "no-go".
A Group of Ministers (GOM) constituted for tackling environment issues impacting power projects accepted the suggestions of the Chaturvedi panel.
Meanwhile, PFC has initiated the process of calling preliminary bids for the two proposed UMPPs -- Bedabahal (Odisha) and Cheyyur (Tamil Nadu).
The last date for submission of RFQs (Request for Qualification) for both the projects is November 11, 2013.