The Cabinet Committee on Economic Affairs approved amendments in the Mega Power Policy 2009 on 2 January 2014.
The amendments will clear the road blocks in the realization of provisional Mega Power projects.
The objective is to increase power availability to boost overall growth of the country and also ensure that consumers are reasonably charged for electricity supplied.
The major amendments to the Mega Power Policy 2009 are:
• The developer must tie up at least 65 percent of installed capacity through competitive bidding.
• Remaining 35 percent of installed capacity will be allocated under regulated tariff as per the respective State government policies.
• The thermal power projects of 1000 MW and above, capacity and hydro power projects of 500 MW and above are allowed duty-free equipment imports.
• To avail the a benefits, project developers must submit status certificate of the provisional mega power projects along with fixed deposit receipt from any scheduled bank as a security for a term of 36 months.
• Extend the maximum time period to 60 months instead of 36 months from the date of import for provisional mega projects for furnishing final mega certificates to tax authorities.
• The dispensation will be one time and limited to 15 projects which are located in the States having mandatory host State power tie up policy of PPAs under regulated tariff.
If you have any Question/Point on the above information, please ask/discuss it in the Current Affairs Group
When: 2 December 2014