Guidelines for Power Generation in Special Economic Zones
THE Commerce Ministry has issued revised guidelines power generation, transmission and distribution in Special Economic Zones.
A power plant can be set up by developer(s)/co-developer(s) in a SEZ, as part of infrastructure facility in the processing area or non-processing area of SEZ. Such a power plant setup in the processing area will be entitled to all benefits available to developers/co-developers, including fiscal benefits under Section 26 of the SEZ Act, 2005 including benefits for initial setting up, duty free imports of raw materials, components and consumables for operation and maintenance of power plant and generation of power. Similarly, all obligations and responsibilities of a developer/co-developer under the Act and Rules etc shall be applicable.
The developer/co-developer/SEZ unit as the case may be, can transfer the surplus of the power generated in their power generating plants stand alone or captive plants, in excess of the requirement of the SEZ, to DTA. However, such a developer/co-developer/SEZ unit power plant shall have to make an application for sale of surplus power to DTA to the Development Commissioner and will have to pay duty as applicable on import of such power.
In respect of power supplied from processing area to constituents in non-processing area or from processing area/non processing area to DTA, it should be at such a price as agreed to between the relevant regulator and the power supplier (developer/co-developer/unit).