With the CM putting pressure to ensure that the 1,500 MW power plant at Bawana is completed in time for the 2010 Commonwealth Games, Power Minister A K Walia has indicated that the plant may soon be granted "mega project status' by the Union Ministry of Power. "There are certain terms and conditions to be met before a power plant can be granted mega project status. We are in discussion with various stakeholders to ensure that these pre-conditions are met,' he said. For one, a power plant has to have an installed capacity of 1,000 MW or above to qualify. Also, the plant has to supply power to more than one state. "Both Haryana and Punjab have expressed interest in procuring about 10-15 per cent power from Bawana,' said Walia. Once the Power Purchase Agreements (PPA) are signed with any one of these states, the power plant will qualify to gain various incentives that come with the mega project status. "The Bawana power plant, if granted the status, will become eligible for various fiscal concessions, such as zero customs duty, a 10-year tax holiday and exemption from sales tax and local levies,' a senior power department official said. Not only will this bring down the construction costs but also the cost of generation of power, thus ensuring that power is supplied to the discoms at competitive rates. The project will also be able to procure LNG at duty-free prices. All three Delhi discoms had indicated that they were reluctant to enter into a PPA with the Bawana plant due to concerns about a hike in gas prices. "With the gas prices being high, it was felt that the discoms would have to buy power at rates that could shoot up to as high as Rs. 5 per unit,' a power department official said. However, a mega-project status will ensure that the power purchase cost is below Rs 3 per unit. Power Secretary Rajendra Kumar too, has confirmed that discussions are underway to confer the status on the plant. "The Chief Secretary has called a meeting on July 23 to discuss this issue,' he said.