Though the new government has kept its promise to provide counter-guarantee to the eight fast-track power projects, it has limited itself to a minimum liability.

The discussion will focus on reducing the project cost that would be achieved by inviting international competitive bids for engineering, procurement and construction or negotiating the cost following the fall in equipment prices in international markets.

This apart, the meeting will also discuss the possible amendment to the tariff notification, said sources. The tariff notification was prepared in 1992 and has been revised several times since. The experts will debate on issues such as formula to derive per unit tariff, calculation of fixed andvariable costs.Announcing the new counter-guarantee norms last month, the cabinet said the guarantee would now be limited to the payment of outstanding foreign debt only in cases of adverse events leading to the contract's termination.

It said the centre would not be liable to pay annual energy charges to the independent power producer (IPP) as was provided for in the earlier scheme.

Tax relief on additional generation has also been abolished. The payment of heat rate and auxiliary consumption will be based only on actual consumption. According to the ministry, these measures will reduce the project cost, bringing down tariffs.

The three projects, which are subjected to the new guidelines, are the 250mw lignite-based Neyveli power plant in Tamil Nadu, 1040mw Hinduja power plant in Visakhapatnam, Andhra Pradesh and the 1082mw coal-based project at Bhadravati in Maharashtra.