Mumbai, July 06: The centre is considering a proposal to extend tax benefits available to mega power projects of 1,000 mw thermal generation capacity to those of lesser capacity, union power minister Anant Geete has said. "We are currently discussing a proposal to extend the existing policy of 100 per cent exemption from customs and excise duties for new thermal power projects and hydroelectric projects of 500 mw to some other projects as well", Geete said addressing a seminar on the Electricity Act 2003 organised by Indian Merchants' Chamber.

"However, the government will have to consider the Finance Ministry's views about revenue implications of extending such exemptions to other projects," he said.

On enactment of Electricity Act 2003, Geete said it would help to speed up reforms in the power sector, revamp state electricity boards, improve quality of regulations and accountability.
The new electricity and power tariff policy would be formulated through discussions with states and power sector entities, Geete said. Bureau Report