core sector communique

Government of India Issues Mega Power Policy

The Minister of State for Power, Shri K.C. Venugopal, informed Lok Sabha in a written reply that Government of India has issued Mega Power Policy which envisages fiscal concessions like Zero Custom Duty for import of capital equipment for the power projects, benefit to the domestic bidders for the projects and income tax benefit. In addition, the income tax holiday regime as per section 80-IA of the income tax Act 1961 can also be availed for taking up Mega Power projects. The minister also informed that Foreign Direct Investment (FDI) upto 100% is permitted in power sector, under the automatic route, for Generation and transmission of electric energy produced in hydro-electric, coal/lignite based thermal, oil based thermal and gas based thermal power plants; (ii) Non-Conventional Energy Generation and Distribution, distribution of electric energy to households, industrial, commercial and other users and in Power Trading.