Government relaxes mega power policy

The union cabinet today approved relaxations in the provisions of the existing policy on mega power projects in order to make setting up of mega power projects viable. 

Under the amended policy, the government will follow a simpler procedure for grant of mega certificate and encourage capacity addition. It will also encourage technology transfer and indigenous manufacturing in the field of super critical power equipments.

The revised policy aims to rationalise the policy and bring it in consonance with the National Electricity Policy 2005 and Tariff Policy 2006, a government release said.

The amendment envisages the following modifications to the existing mega power policy:

The existing condition of privatisation of distribution by power purchasing states has been replaced by the condition that power purchasing states will undertake to carry out distribution reforms as laid down by the ministry of power.

The conditions requiring inter-state sale of power for getting mega power status has been removed.