The Union Cabinet on Wednesday extended the time limit for 10 power projects by 36 months to furnish documents required to become certified 'mega' projects so as to avail tax benefits and bid for tenders or supply of electricity.
Extension of time period to 36 months for furnishing the final mega certificate will enable developers to competitively bid for future Power Purchase Agreements (PPAs) and get tax exemptions as per policy terms, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, said in a statement. "The increased liquidity will boost the overall growth of the country and also ensure the revival of various stressed power assets," it added.
The time period 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 & 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.
Projects of capacity of 1000 MW and more and catering power to more than one state should be considered as a mega project. Projects which cater power to a single state, irrespective of size, would not come under this category, the Ministry of Power had earlier stated.
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, the Cabinet added.
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