The government has inserted "lock-in" clauses for promoters of the proposed ultra mega power projects.
Thus, a promoter will not be able to divest more than 49 per cent of the equity until two years after the project starts commercial production, and will have to retain at least 26 per cent 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.
The aggregate equity shareholding of the selected bidder in the issued and paid-up equity share capital of Sasan Power shall be according to these conditions. "These conditions would also become the norm for all other proposed ultra mega power projects," sources said.
In the event of the selected bidder being a consortium, the conditions will apply to only its lead member, and not all the promoters or stakeholders in the project entity.
The lead member, or the bidding company will have the right to disinvest its entire equity after the 12-year period. At the same time, this will be applicable only as long as the members (including the lead member at all times) adhere to the minimum equity requirements and conditions.
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