Exclusive sources indicate the Indian government is set to deliver significant relief to provisional mega power projects by extending full benefits of the Mega Power Policy, 2009. This includes 100% exemption from customs and excise duties on imported project equipment—a key boost for capital-intensive developments. Currently, these benefits apply only to projects securing power purchase agreements (PPAs) via Section 63 of the Electricity Act, 2003, which requires tariff-based competitive bidding. The proposed amendment would extend exemptions regardless of PPA type, even under Section 62’s cost-plus mechanism, provided projects tie up at least 85% of capacity on a long-term basis.The Power Ministry has finalized a Cabinet note after completing inter-ministerial consultations. This move aims to revive stalled mega projects amid rising energy demands and renewable transitions.Companies like Adani Power, Sembcorp Gayatri, DB Power, and GUVNL stand to gain substantially, potentially unlocking investments and enhancing grid reliability. The policy tweak signals New Delhi’s commitment to bolstering thermal capacity while balancing fiscal incentives with market dynamics.