Exemption for Project for Generation of Power Using Non-Conventional Materials – Relaxation for State Electricity Boards
AS per Notification No. , dated 08.09.2005,
All items of machinery, including prime movers, instruments, apparatus and appliances, control gear and transmission equipment, and auxiliary equipment (including those required for testing and quality control) and components, required for initial setting up of a project for generation of power using non-conventional materials, namely, agricultural, forestry, agro-industrial, industrial, municipal and urban waste, bio waste or poultry litter, falling under any Chapter of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India, are exempted from so much of the duty of customs leviable thereon which is specified in the said First Schedule as is in excess of 5% ad valorem, subject to the following conditions,-
++ xxxxxxxx
++ the importer proves to the satisfaction of the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, that there is a valid power purchase agreement between the importer and the purchaser, for the sale and purchase of electricity generated from the non-conventional materials, for a period of not less than ten years from the date of commissioning of the project; and
++ xxxxx
Now the Government has amended the above Notification to stipulate that the condition (ii) above will not be applicable to the power generation projects promoted by State electricity boards or corporations which are notified by the respective State Governments as the State Transmission Utility and Licensee, by inserting a proviso under the condition (ii).
A similar amendment is made to Central Excise Notification No. , dated the 8th September, 2005
Notification No. : Dated November 18, 2010 and Notification No. : Dated November 18, 2010