Centre likely to extend compliance deadline for tax sops on long-term PPAs by three years

The government proposes to extend the compliance timeline for availing of tax benefits being given to large power projects worth Rs 1.5 lakh crore under the Mega Power Policy by three years.

The 2009 policy promised exemption of customs duty on equipment and excise duty benefits to 25 power projects of 30,000 MW capacity that sign long-term power purchase deals. However, given the lack of power procurement tenders from states, the government proposes to extend the deadline to give producers more time for compliance, a senior government official said.