The PMU will monitor the performance of PPP projects at the project authority level and the PRU at the Ministry or State Government level. The PMU is to prepare a report to be submitted to the PRU within 15 days of the close of the relevant month. The report will cover compliance of conditions, adherence to time lines, assessment of performance, remedial measures, imposition of penalties, etc. In addition, the respective Ministries will send quarterly compliance reports to the Planning Commission with a copy to the Finance Ministry. The Planning Commission, in consultation with the Ministry of Finance, will prepare a summary of these reports along with the recommendations relating to further action/improvements which would be placed before CCI once every quarter for the next two years. Further, the government has decided to relieve companies from paying customs duty on equipment imported for existing mega power plants and for which orders have already been placed. The new tax regime will however remove the distinction between mega and non-mega for future power projects. The proposed duty structure will entail five per cent customs duty, four per cent special additional duty and 12 per cent excise duty equivalent to the duty levied on domestic equipment. Also, it is expected to protect domestic equipment manufacturers such as BHEL and L&T from a 21 per cent levy on imported gear. Under the current policy, mega power plants do not attract any import duty on equipment.

The Ministry of Power has given its consent to the model for price pooling of coal proposed by the Ministry of
Coal. The move is likely to even out the impact of pricey imported fuel on power generation. The model has now been sent to the Prime Minister's Office (PMO) for clearance. Once the PMO's office gives its clearance,
the Coal ministry will ask CIL to adopt the price pooling mechanism at its board meeting. Power producers have already accepted the proposed model. According to the model, CIL will import coal and then supply it to power generators. Power plants in coastal areas will be supplied 30 per cent of their total requirement in
imported coal, while those within 300 km of the coastline will be supplied 15 per cent. Rest of the generators will use 100 per cent domestic coal. The resultant increase in price of coal will be distributed equally among all consumers irrespective of the coal supplied.

Price pooling basically means common pricing of similar grade coal. This price is arrived at by taking the average price of imported and domestic coal. The model proposes that all consumers equally share the common price.

On the state level, the West Bengal Government has decided against land acquisition for projects to be developed through PPP route. As per the new decision, the state government will only act as a facilitator to get faster clearances and tax benefits. The PPP project promoter has to acquire land all by itself. In some cases, rehabilitation might be provided in accordance with the laid down policies of the state. The decision may impact a number of development projects in the state, including some railway projects. Meanwhile, the state government might ask all departments to come up with the available land parcels they have with them. This will be the state's socalled land bank. Land will be offered to investors or private partners from this bank. Earlier, it was the West Bengal Industrial Development Corporation (WBIDC) which would facilitate the transfer of land to investors even for PPP projects.