Cabinet approves amendment to Mega Power Policy for 10 provisional projects

The Union Cabinet on Wednesday approved amendments in Mega Power Policy 2009 to identify 10 provisional mega certified projects.

The Cabinet Committee on Economic Affairs (CCEA) approved amendments to the mega policy and extended the time period to 36 months for furnishing mega certificates to tax authorities “to enable developers to competitively bid for future PPAs and get tax exemptions”.

"The increased liquidity will boost the overall growth of the country and also ensure the revival of various stressed power assests," read the press release.

The time period for the 10 provisional mega projects which are commissioned or partly commissioned for furnishing the final mega certificates has been extended to 156 months instead of 120 months from the date of import.

“During this extended period, bids for firm power (combination of intermittent renewable energy, storage and conventional power) will be invited in co-ordination with Ministry of New and Renewable Energy (MNRE) and Solar Energy Corporation of India Limited (SECI) and these mega projects will be expected to participate in such bids to secure PPAs,” said the official statement.

Ministry of Power will also develop an alternative in this period, based on present electricity markets while ensuring that benefits are passed onto consumers in a competitive manner.