(a) whether the Government is contemplating to make some changes in the existing
Mega Power Policy and adopt a six pronged strategy in the country in order to bring
reforms in power sector; and
(b) if so, the details thereof?
(a) whether the Government is contemplating to make some changes in the existing
Mega Power Policy and adopt a six pronged strategy in the country in order to bring
reforms in power sector; and
(b) if so, the details thereof?
THE MINISTER OF POWER ( SHRI P.M. SAYEED )
(a) & (b) : The mega power policy announced in 1995 has been reviewed and revised
from time to time after due inter-ministerial consultations, considering the experience
gained in its implementation and the needs of the power sector. The policy was first
revised in November, 1998 and provided for zero customs duty for import of capital
equipment for 19 identified inter-state mega power projects in the Public as well as
Private Sector. In addition, the income-tax holiday had been continued with the
provision that the tax holiday period of 10 years can be claimed by a promoter in any
block of 10 years within the first 15 years.
As per the latest amendment to the Customs Notification issued in March,
2003, the customs duty waiver has been extended to all inter-state projects which fulfill
the basic criteria of minimum capacity of 1000 MW for thermal and 500 MW for hydel
projects subject to certification by the Ministry of Power.