Time period for furnishing the final Mega certificates to the Tax authorities extended to 120 months from the date of import
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi has approved the time period for the provisional Mega projects (25 projects), for furnishing the final Mega certificates to the Tax authorities be extended to 120 months instead of 60 months from the date of import. Developers would be required to keep their Fixed Deposit Receipt (FDR) or Bank Guarantee (in lieu of duty exemption claimed) alive.The CCEA also approved 25 Provisional Mega certified project for Mega Policy benefits in proportion to the long term PPA (Power Purchase Agreement) tied up, as permitted under the Mega Power Policy, once the specified threshold capacity of the project, gets commissioned. However, the money realized by the developer, if any, as a result of release of proportionate Bank Guarantee would first be utilized towards the repayment of the Bank dues by the developer. A suitable mechanism will be worked in consultation with Department of Revenue for operationalisation of release of proportionate Bank Guarantee.
This is expected to enable developers to competitively bid for PPAs
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