The Cabinet Committee on Economic Affairs is likely to take up this week the Power Ministry's proposal to amend the Mega Power Policy.
The issue was supposed to be discussed during last week's CCEA meeting but was not taken up as Power Minister Jyotiraditya Scindia was not present, a source privy to the information said, without disclosing details.
The Mega Power Policy was introduced in November 1995 to provide impetus for the development of large-size power projects and derive benefits from economies of scale.
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Thermal power projects of 1,000 MW or more and hydel power plants of 500 MW or more are eligible for benefits under the Mega Power Policy.
These guidelines were modified in 1998 and 2002 and last amended in April 2006 to encourage power development in Jammu & Kashmir and the North Eastern region.
Mega Power Projects can tie up electricity sales to distribution utilities through long-term power purchase agreements. They can also sell power outside these agreements, in accordance with the National Electricity Policy 2005 and the Tariff Policy 2006, as amended from time to time.
The benefits of the Mega Power Policy also apply to energy-efficient supercritical projects that are awarded through international competitive bidding with the mandatory condition of setting up indigenous manufacturing facilities.
