ISLAMABAD - Announcing the decision in the matter of upfront tariff for new bagasse based co-generation projects, Nepra has extended the date of acceptance of upfront tariff till May 28, 2015.The authority approved upfront bagasse co-generation projects on May 2013, explaining that the option for accepting upfront tariff by co-generation projects will be applicable for one year (365 days) from the date of approval of upfront tariff by the authority. The Pakistan Sugar Mills Association (PSMA), on April 15, 2014 requested for the extension of last date, which was expiring on May 28, 2014. Sponsors of Shahtaj Sugar Mills, Association submitted that they were in process of obtaining necessary approvals and finalising of financial documents, as well as power purchase agreement. They requested the date of acceptance of upfront tariff may be extended up to May 28, 2015. PSMA Punjab zone pleaded in their request that certain conditions including environmental, grid approval, and generation licence were required to be satisfied for the acceptance of tariff and a number of co-generation projects were under various stages of developments. NEPRA in its decision wrote that the main objective of approve upfront tariff for new bagasse-based co-generation projects was to facilitate projects for setting up power generation plants by making maximum use of available indigenous fuel so that they could generate electricity for themselves and supply surplus to grid.The authority observed that up till now only two co-generation projects have opted for upfront tariff while several others have either filed their application or are in process of fulfilling the requirements of the approved upfront tariff.