Cabinet approves amendment in Mega Power Policy 2009 for provisional mega power projects

The Cabinet Committee on Economic Affairs has approved the time extension of 36 months to identified 10 provisional mega certified projects for furnishing the final mega certificates to the tax authorities.

As a result, the time period for the 10 provisional mega projects which are commissioned or partly commissioned for furnishing the final mega certificates to the tax authorities has been extended to 156 months instead of 120 months from the date of import. During this extended period, bids for firm power  will be invited in co-ordination with the Ministry of New and Renewable Energy (MNRE) and the Solar Energy Corporation of India Limited (SECI), and these mega projects will be expected to participate in such bids to secure power purchase agreements (PPAs).Extension of time period for furnishing final mega certificate will enable developers to competitively bid for future PPAs and get tax exemptions as per policy terms. The increased liquidity will boost the overall growth of the country and also ensure the revival of various stressed power assets. The 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.