In a swift move before exit, the government announced a slew of measures to boost the economy and bring about changes to improving mass utilities like power, increasing the number of subsidised LPG cylinders per household, rural water supplies and sanitation.
The Cabinet Committee on Economic Affairs (CCEA) Thursday cleared the amendments to the Mega Power Policy, but with riders to avail benefits by generation firms and also approved operationalisation of Power System Development Fund.
Further it approved the implementation of Rural Water Supply and Sanitation Project for states like Assam, Bihar, Jharkhand and Uttar Pradesh.
The government also approved the proposal of the Ministry of Power for operationalisation of the Power System Development Fund.
In addition, the government said it “will look into” increasing the quota of subsidised LPG cylinders to 12 per household in a year from the current limit of nine.
“To avail the benefits under the (Mega Power) policy, the developer must tie up at least 65% of the installed capacity through competitive bidding,” finance minister P Chidambaram told reporters on Thursday.
The remaining 35% of the installed capacity should be through the regulated tariff according to the host state’s policy, he said.
As per Mega Power Policy, thermal power projects of 1,000 MW, and above, capacity and hydro power projects of 500 MW and above are allowed duty-free equipment imports.
These benefits can only be availed after submission of provisional mega power project status certificate along with a fixed deposit receipt from any scheduled bank as a security for a term of 36 months.
“The maximum time period has been extended to 60 months instead of current provision of 36 months from the date of import of provisional mega projects for furnishing final mega certificates to the tax authorities,” Chidambaram added.
The proposal of the Ministry of Power for operationalisation of the Power System Development Fund was also approved by CCEA.
“Power System Development Fund (PSDF) will be utilised for creating necessary transmission systems of strategic importance based on operational feedback by Load Dispatch Centers for relieving congestion in Inter-State Transmission Systems,” Chidambaram said. The fund will also be utilised towards installation of shunt capacitors, series compensators and other reactive energy generators for improvement of voltage profile in the grid.
Renovation and Modernisation (R&M) of transmission and distribution systems for relieving congestion and any other scheme or project in furtherance of the above objectives, such as, conducting technical studies and capacity building, etc.
The government also approved the implementation of Rural Water Supply and Sanitation Project for Low Income States (RWSSP-LIS) of Assam, Bihar, Jharkhand and Uttar Pradesh with World Bank assistance over a period of six years.
The project, cleared by CCEA, is expected to directly benefit a rural population of about 78 lakh persons including 44 lakh Scheduled Castes and more than eight lakh Scheduled Tribes, with improved piped water supply covering approximately 17,400 habitations in 2,150 Gram Panchayats in 33 districts.
On the LPG quota, Chidamabaram said: “There is a request that the subsidised cylinders be increased from nine to 12...It came from several chief ministers.”
There have also been demands to roll back the hike of Rs 220 per cylinder of non-subsidised cooking gas (LPG), which customers buy after consuming their quota of nine subsidised cylinders.
“I am not sure whether the Petroleum Ministry has actually operationalised the increase in price of non-subsidised cylinders.”
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}