The Cabinet Committee on Economic Affairs; which considers proposals for investment of more than Rs 1,000 crore, deals with industrial licensing policies and reviews rural development and the Public Distribution System; chaired by the Prime Minister, Narendra Modi, has recently approved the time extension (36 months) to identified 10 Provisional Mega certified projects for furnishing the final Mega Certificates to the Tax authorities.
Extension of time period for furnishing final mega certificate will enable developers to competitively bid for future PPAs and get tax exemptions as per Policy terms. The increased liquidity will boost the overall growth of the country and also ensure the revival of various stressed power assets.
The time period for the 10 Provisional Mega projects that are commissioned or partly commissioned for furnishing the final Mega certificates to the Tax authorities 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. 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.
