Club class

Jan 08 2014, 13:54 IST
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SummaryMega power policy caters to a restricted club, as 25 projects with ‘provisional mega plant’ status get a breather

10% by four ultra mega power projects (UMPPs) which have been awarded so far, 7% by UMPPs yet to be awarded (including Orissa and TN UMPPs), 15% by private projects with confirmed mega status, and 19% by with provisional mega status.

According to JP Morgan, a back of the envelope calculation indicates that a mega project club can save up to Rs5.25 million/MW (=21% of Rs25m/MW of equipment cost, overall capital cost is Rs55-60m/MW) in duties. Even brownfield expansions at mega project sites enjoy certain duty breaks.

NTPC is a key benficiary of this policy change, with 7.7GW of its under-construction projects due for CoD in the 12th Plan period and 32.77GW post-12th Plan projects are classified as mega projects.

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