Mega power policy may be delayed

The power ministry's mega-power policy is likely to be delayed further in the wake of objections raised by the Planning Commission. The commission has called for scrapping of the "ill-conceived policy".

The Cabinet Committee on Economic Affairs was slated to discuss the policy yesterday but the matter was postponed.

Among other measures, the power ministry has proposed that power projects with a minimum capacity of 250 Mw be granted concessions like zero Customs duty available under the mega-power policy.

"The Plan panel has opposed the move and has observed that the structure of the mega-power projects and the policy crafted around these projects shall not be supported and the current attempts of the power ministry to recast the old policy to meet the current needs will only deliver a poor solution and lead to long-term problems," a government official told Business Standard.

The ministry had also asked for price preference available under existing policy to be dispensed with in step with the general policy and renaming of the mega-power policy as large-size power project policy.

"The Planning Commission is of the view that the mega-power policy was ill conceived and tinkering with it, as currently being proposed, shall not be supported and the policy should be scrapped," the official added.

The other demand made by the ministry was to decide the qualifications of an inter-state project. "The power ministry had also asked for a condition that projects to qualify as inter-state projects for mega policy benefits, at least 25 per cent power shall be sold outside the state ," a power ministry official said.