Mega power projects get excise sops
UMPPs have been granted complete excise duty exemption for importing power equipment required for super critical coal thermal technology.business Updated: Aug 15, 2008 21:00 IST
Ultra mega power projects, (UMPPs) have been granted complete excise duty exemption for importing power equipment required for super critical coal thermal technology.
The duty sop will help companies that are into large power projects brought down their project cost significantly and prevent tariff escalation for the final consumer.
According to a government notification, “the exemption is applicable to goods procured for projects, which are set up under government of India initiative and have an installed capacity of 3,960 mw or above.”
India has chronic power deficiency; the government has planned to provide ‘power for all’ by the end of the Eleventh Plan in 2012. This would entail a creation of an additional capacity of at least 1,00,000 MW by 2012.
The UMPPs, each with a minimum capacity of 4,000 MW or above are being developed with an aim to bridge this gap.
Currently, companies are allowed such a waiver only if they follow international competitive bidding norms while buying equipment.
The move, according to an official, is a part of government’s mega power policy (MPP), which is likely to be announced soon.
On completion, each of these UMPPs will be capable of generating enough electricity sufficient to meet the power needs of a city like Delhi.
Three UMPPs, including Mundra in Gujarat, Sasan in Madhya Pradesh and Kirshnapatnam in Andhra Pradesh, have already been awarded to private developers through competitive bidding.
The other six are being planned in Orissa, Chhattisgarh, Karnataka, Jharkhand, Tamil Nadu and Maharashtra.