Ultra-mega power projects to have local procurement clause

The government is changing the policy for future showpiece ultra-mega power projects (UMPP) that enjoy the benefit of assured domestic coal mines to make it mandatory for promoters to buy a certain percent of equipment from domestic manufacturers.

PM’s principal secretary Pulok Chatterjee has asked power secretary P Uma Shankar to ensure that the power ministry moves a proposal by March 31 to this effect for approval by the Cabinet panel on economic affairs, top government sources told ToI.

The move is aimed at ensuring that capacity to manufacture generation equipment being built by domestic players such as state-run Bhel or private sector L&T don’t idle due to imports, mainly from China.


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