BackPower ministry floats draft cabinet note on mega power policy
Thermal power projects of 1,000MW or more, or a hydel plant of 500MW or more, will be eligible for benefits
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New Delhi: The ministry of power has circulated a draft note for cabinet committee on economic affairs (CCEA) for certain amendments in the mega power policy, power minister Jyotiraditya Scindia said in the Lok Sabha.
“Details will be finalized once the comments of the concerned ministries are received and considered," Scindia said in a written reply.
Thermal power projects of 1,000 megawatts (MW) or more, or a hydel power plant of 500MW or more, will be eligible for the benefit under the mega power policy.
It aims at providing impetus to development of large sized power projects and derive benefit from the economies of scale. These guidelines were last modified in 2006.
Scindia also said the government has decided that fuel supply agreements (FSAs) will be signed for the plants commissioned after March 2009 and scheduled to be commissioned by March 2015 totalling 78,000MW.
So far, of the 172 FSAs as many as 157 pacts have been signed between power producers and Coal India Ltd.
Signing of FSAs will ensure availability of fuel to the power plants which will boost power generation in the coming years, he said.
The government has taken several initiatives to enhance private participation and boosting power generation in the country including structural reforms for state electricity boards, formation of central and state regulatory commissions and formulation of national grid, Scindia added.
The government has also recognized power trading as a distinct activity.
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