12 - YEAR LOCK-IN FOR ULTRA MEGA PROJECTS

The government has inserted “lock-in” clauses for promoters of the proposed Ultra Mega Power Project. Thus, a promoter will not be able to divest more than 49% of the equity until two years after the project starts commercial production, and will have to retain at least 26% for another 10 years.The restrictions have been incorporated in the proposal document for the 4,000- Mw Sasan Project in Madhya Pradesh, set to be the first of the Ultra Mega Projects to get off the ground.