New Delhi, June 29: The Union cabinet has decided that all the inter-state thermal power projects over 1,000mw and hydel power projects over 500mw would be recognised as mega projects and would qualify for various concessions and incentives announced by finance minister Yashwant Sinha in his budget speech.Briefing newsmen about the cabinet meeting here on Tuesday, information and broadcasting minister Pramod Mahajan said that the projects which would qualify for duty concessions include Maithon, Anta, Kawas, Auriya, Gandhar, Cuddalore, and Narmada.
Maithon (1,000mw) is being set up jointly by the National Thermal Power Corporation (NTPC) and Damodar Valley Corporation (DVC). NTPC would expand the four gas-based plants Anta, Auriya, Kawas, and Gandhar to an additional capacity of 1,300mw each. The other inter-state projects approved are Cuddalore (1,000mw) and Narmada (1,000mw-to be expanded to 2,000mw).
"The cabinet was asked to define the benchmark for mega power projects as it was not clearlydefined when various concessions were announced for it by the Government on October 30 last," Mahajan added.
The Government has allowed import of capital goods free of customs duty, 15 per cent price preference, deemed export benefits for domestic bidders, income-tax exemption/concessions for any 10 years during the first 15 years, and sales and local tax exemptions for supplies to mega power projects as concessions to increase power generation in the country.
The "power vision" of the Government plans to generate an additional 80,000mw before 2008.
The other projects which had already been notified for duty concessions include Kahalgoan Stage-2 (1,500mw), North Karanpura STPP (2,000mw), Barh STTP (2,000mw), Cheyyur (1,500mw), Hirma (3,960mw), Krishnapattanam (1,500mw), and Pipava (2,000mw). The hydel projects identified for concession were Koel-Karo (710mw), Teesta Stage - 5 (510mw), Koldam (800mw), and Parvati (800mw).
Mahajan said that the cabinet had also approved the commerce ministry's proposalof India joining the Association of Coffee Producing Countries (ACPC) and cleared the revival package for the Calcutta-based National Instruments Ltd.
The minister said that the Indian high commissioner in the UK Lalit Mansingh had been asked to sign the ACPC agreement.
The decision was pending before the cabinet for quite some time after the Atal Bihari Vajpayee government lost the vote of confidence in the Lok Sabha on April 17.
The ACPC was floated by leading coffee-producing countries like Brazil and Colombia in 1989, after ending the retention system.
India's decision to join the ACPC coincides with its efforts to get funds for research and development from the International Coffee Organisation (ICO), a body of coffee-growing and consuming nations.
Regarding National Instruments, Mahajan said that the revival package would involve infusion of fresh equity of Rs 2.63 crore, extension of Rs 18.21 crore for voluntary retirement scheme, and freezing of the Rs 161.26-crore dues to the government forone year.
"The Government would also give guarantee for working capital to be obtained by the company as loan from the banks," the minister added.
He said if the revival package worked, then the Government would consider writing off the entire dues. It was for the first time that the Government had come out with such a revival package, the minister said.
On its part, the West Bengal government had agreed to give relief in sales tax and power subsidy. National Instruments was producing equipment like binoculars and thermometers, especially for Indian Railways, before it petered out against competition from other companies following liberalisation.
The cabinet also modified the "Balika Smriddhi Yojana" for the girl child belonging to below-the-poverty line families and gave it the status of a centrally-sponsored scheme.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.