3-year extension for 10 mega power projects to submit required documents

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.

The extension of time period will enable developers to competitively bid for future PPAs (Power Purchase Agreements) and get tax exemptions as per policy terms, an official statement said.

This will lead to an increase in liquidity of such projects. It will also boost the country's overall growth and ensure the revival of various stressed power assets, it said.

"The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, today approved the time extension (36 months) to identified 10 provisional mega certified projects for furnishing the final mega certificates to the tax authorities," the statement said, adding that the CCEA has approved an amendment in the Mega Power Policy 2009 to give more time to these power projects.

The time period for the 10 provisional mega projects which are commissioned/ partly commissioned for furnishing the certificates to the tax authorities has been extended to 156 months instead of 120 months from the date of import, the statement added.

During this extended period, bids for firm power (combination of intermittent renewable energy, storage and conventional power) will be invited in coordination with the 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.

The power ministry will also develop an alternative in this period, based on present electricity markets, while ensuring that benefits are passed on to consumers in a competitive manner.