Power Ministry Approves More Liquidity To Boost Overall Electricity Production
The Cabinet is now approved an increase in liquidity in the existing power policy, giving a boost to the overall growth of the country. According to a formal statement by the Union Cabinet, this has also been done to ensure that this can lead to a revival of the various stressed power assets.
The amendment includes a time extension to identify 10 Provisional Mega certified projects that will help furnish the final Mega Certificates to the tax authorities. An extension of three years (36months) has been provided to furnish the final mega certificate.
This will ensure than potential developers can bid competitively for future Power Purchase Agreements (PPAs). They will also be given a tax exemption as per policy terms. This has been decided and confirmed by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi. In a formal statement, the committee spokesperson has said that, “The increased liquidity will boost the overall growth of the country and also ensure the revival of various stressed power assets.”
From the initial period of 120 months, the time period has now been extended to 156 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 a capacity of 1000 MW and more and catering power to more than one state should be considered as a megaproject. 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.