Cabinet move to smoothen mega power project process for NTPC

New Delhi, Nov 2 (UNI) The government today gave its approval to waiver of the ceiling of Rs 1,000 crores for equity investments by the country's largest power generating company, NTPC to establish financial joint ventures and wholly-owned subsidiaries in India or abroad.

The decision by the Cabinet Committee on Economic Affairs (CCEA) is mainly for the purpose of participating in the bidding of Ultra Mega Power Projects (UMPP), subject to the implementation of maximum two projects being established at the initiative of the Power Ministry.

Speaking after the meeting, Finance Minister P Chidambaram told reporters that the ceiling of 15 per cent of the net worth of NTPC in one of the project and the overall ceiling of 30 per cent of the net worth of the NTPC in all such projects put together shall remain.

This will also facilitate participation of joint venture of NTPC and BHEL in the bidding for the development of UMPPs.

Mr Chidambaram said this will also result in technically and commercially optimum bid as well as facilitating tying up with world class mining operators.

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