CCEA clears changes to Mega Power Policy - Angel Broking

The Cabinet Committee on Economic Affairs (CCEA) has approved amendments in the Mega Power Policy which would benefit power generation companies if they fulfil certain mandatory conditions. To avail the benefits under the Mega Power policy the power generator must tie up at least 65% of the installed capacity through competitive bidding and the remaining 35% of the installed capacity should be through regulated tariff according to the host state's regulations. Currently, as per the policy thermal power projects of 1,000MW and above capacity and hydro power projects of 500MW and above capacity are allowed duty-free equipment imports. These benefits can be availed after submission of provisional mega power project status certificate along with a fixed deposit receipt from any scheduled bank as a security for a term of 36 months. The maximum time period for provisional mega projects for furnishing final mega certificates to the tax authorities has been extended to 60 months instead of current provision of 36 months from the date of import.

Source : Equity Bulls

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