UP sops for pvt energy players

The UP government on Tuesday amended its excise and energy policies. Changes in the Energy Policy 2003 have been brought about to encourage private investment, including from Reliance Group which has committed to invest Rs 10,000 crore in a gas-based power project. These decisions were taken at a Cabinet meeting presided over by Chief Minister Mulayam Singh .

Changes in energy policy are largely confined to concessions given in land acquisition and resettlement by the private investors in power sector. Henceforth, the state government would bear 10 per cent of land acquisition/resettlement cost for private parties investing Rs 1,000 crore to Rs 2,500 crore in thermal power plants; 20 per cent of total cost for gas and hydro-based plants.

Likewise, for investors in the Rs 2,500-5,000 crore category, the state would bear 20 per cent of the acquisition and resettlement cost in case of thermal projects and 40 per cent in case of gas and hydro-based plants.