The Cabinet Committee on Economic Affairs, chaired by PM Narendra Modi, approved a time extension of 36 months to the 10 Provisional Mega certified projects identified for furnishing the final Mega Certificates to the Tax authorities.
The extension of 36 months to furnish the final mega certificate will allow developers to competitively bid for power purchase agreement (PPA) in the future and get tax exemptions according to the Policy terms. The increased liquidity shall boost the overall growth of India while ensuring the revival of several stressed power assets.
The time period for the ten provisional mega projects that have been commissioned or partly commissioned to furnish the final Mega certificates to the tax authorities is extended to a period of 156 months from the date of import instead of 120 months. In the extension period, bids for firm power (intermittent renewable energy, storage, and conventional power combined together) would be invited in coordination with the Ministry of New and Renewable Energy (MNRE) along with the Solar Energy Corporation of India Limited (SECI).
Further, these Megaprojects are expected to take part in such bids for securing PPAs. The Ministry of Power shall also develop an alternative in this extension period, on the basis of the present electricity markets and ensure that the benefits are passed onto consumers in a competitive manner.
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