Power panel nod to 5 ultra mega projects

The energy co-ordination committee (ECC) chaired by Prime Minister Manmohan Singh met today to discuss issues related to the power sector, including the power ministry's ambitious ultra mega power projects, hydel electricity generation, and tackling the coal-linkage issue for thermal power generation plants.

"The general agreement at the meeting was to proceed with the setting up of five ultra mega power projects with a total capacity of 20,000 Mw," a government official told Business Standard.

The meeting was attended by Finance Minister P Chidambaram, Petroleum Minister Murli Deora, Power Minister Sushil Kumar Shinde, Power Secretary RV Shahi, Planning Commission Deputy Chairman Montek Singh Ahluwalia, member Planning Commision Kirit Parikh, member Secretary Planning Commission Rajiv Ratna Shah, Advisor Planning Commission Gajendra Haldea and other government officials.

The high-powered meeting discussed tax sops for the ultra mega power projects and expediating their coal allocations. The ultra mega power project scheme may be exempted from duties.

"Section 80-IA of the Income Tax Act may be extended till 2012," a government official said. Under section 80-IA of Income Tax Act, companies in the infrastructure sectors like power, roads and ports get a 100 per cent tax exemption for a period of any 10 consecutive years out of 15 years.

The meeting discussed coal linkages for these projects as two projects would be based on pit-head domestic coal, while the other projects would be based on imported coal. Provision of flexibility in the case of size of units of the ultra mega power projects was also discussed at the meeting.

"Power reforms were also discussed in the meeting," the official added.