Cabinet approves Mega Power Policy amendments to boost power availability

New Delhi [India], Apr. 1 : The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi on Friday approved the time period for the provisional Mega projects (25 projects), for furnishing the final Mega certificates to the Tax authorities be extended to 120 months instead of 60 months from the date of import.

Increased power availability will boost overall growth of the country and also ensure that cost of power to the consumers does not increase.

The CCEA also approved 25 Provisional Mega certified project for Mega Policy benefits in proportion to the long term PPA (Power Purchase Agreement) tied up, as permitted under the Mega Power Policy 2009, once the specified threshold capacity of the project, gets commissioned.

However, the money realised by the developer, if any, as a result of release of proportionate Bank Guarantee would first be utilised towards the repayment of the Bank dues by the developer.

A suitable mechanism will be worked in consultation with Department of Revenue for operationalisation of release of proportionate Bank Guarantee.

This is expected to enable developers to competitively bid for PPAs in the future. Once the developer commissions the specified threshold capacity, proportional mega benefits would facilitate easing out liquidity crunch with the developers and improve the viability of their projects.

Source: ANI