The Union Cabinet on Wednesday prolonged the time restrict for 10 power projects by 36 months to furnish documents required to turn into licensed ‘mega’ projects in order to avail tax advantages and bid for tenders or provide of electrical energy.
The extension of time interval will allow builders to competitively bid for future PPAs (Power Purchase Agreements) and get tax exemptions as per coverage phrases, an official assertion stated.
This will lead to a rise in liquidity of such projects. It may also enhance the nation’s total progress and make sure the revival of assorted harassed power belongings, it stated.
“The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, in the present day authorised the time extension (36 months) to recognized 10 provisional mega licensed projects for furnishing the ultimate mega certificates to the tax authorities,” the assertion stated, including that the CCEA has authorised an modification within the Mega Power Policy 2009 to give extra time to these power projects.
The time interval for the 10 provisional mega projects that are commissioned/ partly commissioned for furnishing the certificates to the tax authorities has been prolonged to 156 months as an alternative of 120 months from the date of import, the assertion added.
During this prolonged interval, bids for agency power (mixture of intermittent renewable vitality, storage and standard power) shall be invited in coordination with the Ministry of New & Renewable Energy (MNRE) and Solar Energy (*10*) of India Limited (SECI), and these mega projects shall be anticipated to take part in such bids to safe PPAs.
The power ministry may also develop another on this interval, primarily based on current electrical energy markets, whereas making certain that advantages are handed on to customers in a aggressive method.
(Only the headline and film of this report could have been reworked by the Business Standard workers; the remainder of the content material is auto-generated from a syndicated feed.)