Decision of Cabinet Committee on Infrastructure taken on October 1, 2009

1) Bareilly-Sitapur Section of NH 24 in the State of Uttar Pradesh

The Cabinet Committee on Infrastructure on Thursday approved the implementation of project of four laning of Bareilly-Sitapur Section of NH 24 in the State of Uttar Pradesh under NHDP Phase III on Design, Build, Finance and Operate (DBFO) Basis. The main object of the project is to expedite the improvement of infrastructure in the State. The project is one of the stretches approved by the Government under NHDP Phase III. The project road runs between Bareilly and Sitapur which will facilitate in reducing the time and cost of travel for traffic running from Lucknow to New Delhi via Sitapur and Bareilly.

The major impact of the project Highways lies in reducing the time and cost of travel of the traffic running between Lucknow and New Delhi, Nainital etc. It will also increase the potential of employment to local labourers for the project activities. Besides it will also add to the transportation facilities for tourism in the State.

The project is bound to help a large number of beneficiaries comprising of commuters, labourers, tourism industry professionals and traders & businessmen community in very thickly populated areas by adding opportunities galore due to this road infrastructure sub-project, which is covered in the three districts of the State of Uttar Pradesh i.e. Bareilly, Shahjahanpur and Sitapur.

The Cabinet gave approval for 4/6 laning of 4000 km of National Highways under NHDP Phase III A on BOT basis in its meeting held on 5.3.2005. Subsequently Government approved additional stretches on 18.5.2006, 27.10.2006 and 12.04.2007, for implementation of four laning. Total tentative length of 12109 km will be done at an estimated cost of Rs.80626 crore. Accordingly, four laning of 89 stretches having an actual length of 12230 km have been identified. The stretch under consideration is one of the approved stretches.

Courtesy: Cabinet Committee on Infrastructure release
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2) Modification to the Mega Power Policy

The Union Cabinet today approved modifications in the existing mega power policy. This would encourage setting up of mega power plants to take advantage of economies of scale and improve their viability. It will simplify the procedure for grant of mega certificate and encourage capacity addition. It will also encourage technology transfer and indigenous manufacturing in the field of super critical power equipments.

In order to rationalise the Mega Power Policy and bring it in consonance with the National Electricity Policy 2005 and Tariff Policy 2006, the following modifications of the existing Mega Power Policy have been envisaged:-

(i) The existing condition of privatisation of distribution by power purchasing states would be replaced by the condition that power purchasing states shall undertake to carry out distribution reforms as laid down by the Ministry of Power.

(ii) The conditions requiring inter-state sale of power for getting mega power status would be removed.

(iii)The present dispensation of 15% price preference available to the domestic bidders in case of cost plus projects of PSUs would continue. However, the price preference will not apply to tariff based competitively bid projects of PSUs. A Committee would be set up under the Planning Commission, with DHI, MoP and DoR as members which would suggest options and modalities to take care of the disadvantages suffered by the domestic industry related to power sector keeping all factors in view.

(iv)The benefits of Mega Power Policy will also be extended to supercritical projects to be awarded through ICB with the mandatory condition of setting up indigenous manufacturing facility provided they meet the eligibility criteria.

(v) The requirement of undertaking international competitive bidding (ICB) by the developers for procurement of equipment for mega power projects would not be mandatory, if the requisite quantum of power has been tied up through tariff based competitive bidding or the project has been awarded through tariff based competitive bidding.

(vi)A basic custom duty of 2.5% only would be applicable on brown field expansion of existing mega projects. All other benefits under mega power policy available to Greenfield projects would also be available to expansion unit(s) (brownfield projects) even if the total capacity of expansion unit(s) is less than the threshold qualifying capacity, provided the size of the unit(s) is not less than that provided in the earlier phase of the project granted mega power project certificate. All other conditions for grant of the mega power status shall remain the same.

(vii)Mega Power Projects would be required to tie up power supply to the distribution companies/utilities through long term PPA(s) and may also sell power outside long term PPA(s) in accordance with the National Electricity Policy 2005 and Tariff Policy 2006, as amended from time to time, of Government of India.
The mega Power Policy was introduced in November 1995 for providing impetus to development of large size power projects in the country and derive benefit from economies of scale. These guidelines were modified in 1998 and 2002 and was last amended in April 2006 to encourage power development in Jammu & Kashmir and the North Eastern region.

Courtesy: Cabinet Committee on Infrastructure release
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3) Four laning of Parwanoo-Solan Section of NH-22 in the State of Himachal Pradesh under NHDP Phase III

The Cabinet Committee on Infrastructure on Thursday approved the implementation of project of four laning of Parwanoo-Solan Section of NH 22 in the State of Himachal under NHDP Phase III on Design, Build, Finance and Operate (DBFO) basis.
The main object of the project is to expedite the improvement of infrastructure in the State. The project is one of the stretches approved by the Government under NHDP Phase III. The project road runs between Parwanoo and Solan, which will facilitate in reducing the time and cost of travel for traffic running between these two Hill towns and give a boost to the tourism industry.
The major impact of this sub-project shall be on improving the road Highways infrastructure leading to reduction in the time and cost of travel and thereby giving a boost to tourism industry in the hill State of Himachal Pradesh. It will also increase the potential of employment to local labourers for the project activities.
The project is bound to help a large number of beneficiaries comprising of commuters, labourers, tourism industry professionals and traders & business men community in very thickly populated areas by adding opportunities galore due to this road infrastructure sub-project, which is covered in the three districts of the State of Uttar Pradesh i.e. Bareilly, Shahjahanpur and Sitapur.

Courtesy: Cabinet Committee on Infrastructure release