The government was considering further modifications in the mega power projects policy, aimed at promoting capacity addition through fiscal incentives, Minister of State for Power Jaywanti Mehta told the Lok Sabha on Thursday.

In reply to a question, she said modifications to the policy were under inter-ministerial consultations.

As per the latest amendment, customs duty waiver had been extended to all inter state projects with a minimum capacity of 1000 MW for thermal and 500 MW for hydel projects, she said.

The ministry had also proposed a build-own-operate-transfer model for private sector participation in power projects. The proposal was at a preliminary stage and no decision had been taken.

Mehta said two units of 250 MW each of Tehri Dam project were expected to go on stream by 2003-04 with the balance two being commissioned in 2004-05.

On National Thermal Power Corporation's proposed overseas foray, she said the corporation has received a request from the Sri Lankan government for assistance in setting up a 300 MW power project. External affairs ministry's approval for deputing a team is pending clearance.

Mehta said the Karnataka government had sought mega power status for Karnataka Power Corporation's 500 MW Bellary Thermal Power Station.