New Delhi Power companies may soon be allowed to produce bank guarantee for duty-free import of equipment based on the provisional mega power certificate issued by the finance ministry.

Currently, developers furnish a fixed deposit receipt (FDR) of an amount equivalent to the duty on equipment import for getting tax relief. However, companies feel the current practice locks in a large sum of money that could, otherwise, be used for projects, especially at time when it is difficult to mobilise cheaper credit.