Amending Mega Power Policy 2009 for provisional mega power projects

No: ----- Dated: Jan, 02 2014

Amending Mega Power Policy 2009 for provisional mega power projects

The Cabinet Committee on Economic Affairs has approved amendments in the Mega Power Policy 2009 for 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.

These amendments are as follows:

i.              To avail the benefits under this policy, the developer must tie up at least 65 percent of installed capacity/ net capacity through competitive bidding and up to 35 percent of installed capacity/ net capacity under regulated tariff as per the specific host State policy, as the case may be, approved by the respective Regulators under long term Power Purchase Agreement (PPA) with discoms / State designated agency. This dispensation would 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.

ii.             Extend the maximum time period to 60 months instead of 36 months from the date of import for provisional mega projects (25 projects), for furnishing final mega certificates to tax authorities.