India unveils 12-year plan

India unveils 12-year plan

India`s power minister has proposed a levy on power generation which will be used for power sector development. The levy would form part of a blueprint targeting a capacity addition of 80 000 MW over the next 12 years and the creation of a transmission and distribution network.

Two thirds of the money collected would be diverted to states for improving thermal power generation. The remaining one third would be used to develop the hydropower sector.

The plan includes government encouragement to eight large projects that will get duty-free import of equipment and other tax concessions. It also hopes to sign accords by March to create another 15 000 MW of IPP capacity. The news, however, has had a lukewarm response from private developers who said that operating in India is still a daunting task.

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