The government has approved the time period for the provisional 25 Mega 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,” an official statement said.
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 realised by the developer, if any, as a result of release of proportionate Bank Guarantee would first be utilised 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,” the statement adds.
This is expected to enable developers to competitively bid for PPAs in future. “Once the developer commissions the specified threshold capacity, proportional mega benefits would facilitate easing out liquidity crunch with the developers/banks and improve the viability of their projects. Increased power availability will boost overall growth of the country and also ensure that cost of power to the consumers does not increase,” it said.