The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi on Wednesday approved the time extension of 36 months to identified 10 provisional mega certified projects for furnishing the final Mega Certificates to the tax authorities.
Extension of the time period for furnishing the final mega certificate will enable developers to competitively bid for future Power Purchase Agreements (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, according to an official statement released after the cabinet meeting.
The time period for the 10 Provisional Mega projects, which are commissioned/ 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 the 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.
"The extension of time period will increase liquidity and boost the overall growth of the country and also ensure the revival of various stressed power assets," Union Minister for Road Transport and Highways Nitin Gadkari said in a tweet.
(With inputs from ANI)
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