CCEA clears Dabhol project

Added to that, Ratnagiri Gas and Power Private Ltd, the special joint venture of National Thermal Power Corp (NTPC) and GAIL (India) Ltd that has been formed to restart the project, has been given mega power project status.

On the section 80 (IA) benefits, the Dabhol project had to treated as a special case as these benefits are only extended to new greenfield infrastructure projects. However, as this was transfer of assets to a new company, it needed special clearance from the Cabinet sources said.

Sources said the government of Maharashtra has also agreed to issue directives such that the power purchase agreement (PPA) for the Dabhol project would not be reopened by the state regulator and added that no such directions would be given by the central government.

IB Minister Jaipal Reddy who briefed the media said the details of the decisions taken on Dabhol would be announced in the Parliament. In addition to this, the CCEA also cleared a slew of proposals pertaining to investment decisions related to the power and coal sector.

Under this, the Cabinet had decided that approvals would be made in 24 weeks which would expedite the implementation of the projects. The Cabinet also decided to do away with the ‘‘in principal’’ clearance needed from the Planning Commission as well as the pre-public investment board (PIB) stage needed for coal and power projects.

The Cabinet also made it mandatory for the administrative ministries to get environment and forests clearances before a proposal is put up to the CCEA for clearance.