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Investment cap on PSU ventures may be waived

October 16, 2006: In an attempt to provide greater flexibility in setting up of the showpiece ultra mega power projects, the power ministry has moved a proposal seeking to do away with the existing Rs.1,000 crore investment ceiling applicable to public sector units for forming joint ventures.

A draft note to this effect has been put up for the consideration of the Cabinet Committee on Economic Affairs (CCEA). The finance ministry is considering the proposal.

This came in the wake of NTPC’s bidding for all ultra mega power projects. In this connection the ministry has also asked for information on public sector power major NTPC's intention to bid for all ultra mega power projects. It has further sought clarity on the company's plans for forming a consortium for the purpose.

Source: Business Standard