Even if there was an effect, it would only be `marginal', he said, adding that the World Bank had intimated that none of the ongoing projects would be affected by the sanctions.

He said the total component of foreign investment, including investments from Japan, in the power sector was only 23 per cent. The US sanctions were not so `harsh' as was being made out, he said. ``I am sure they understand the security implications,'' he remarked. Only about seven projects, which had been given techno-economic clearance, were likely to be affected by the sanctions, he added.

NTPC: The Minister announced that a Committee, comprising a group of Ministers, had been constituted to look into policy on mega projects as well as work out the details of bidding.

He said thepublic sector National Thermal Power Corporation (NTPC) will incorporate 20 `shell' companies to obtain clearances, like Power Purchase Agreements (PPAs), environment and other statutory clearances, for power projects and bid them to the private companies. If the tariff quoted by the bidders was acceptable, the project would be granted to them. If there were no takers, the NTPC would then take on the projects with central funds, he added.

To begin with, a three-phase 10,000 MW project was being proposed and the Power Ministry was negotiating with three major consortia for establishing a 10,000 MW power project in Orissa. The Chinese Power Investment Corporation, the Consolidated Electric Power of Asia, owned by Southern Electric Company of the US and Broken Hills of Australia had expressed interest in the project.Despite sanctions, these companies had come forward to invest in the country and were talking of selling power in the region of five cents (US denomination) which works out to less than Rs 2, hedisclosed, the Minister noted.

He said two mega projects -- a 1,500 MW to 3,000 MW power plant based on imported coal in Cuddalore in Tamil Nadu and a 2,000 MW LNG plant in Kayankulam in Kerala -- were also in the pipeline.

Also, he said the Centre was working on policy papers covering various important issues in the sector, including liquid fuel supply, standardisation of fuel supply agreement and PPA.