Items used for power generation projects – Customs duty exemption
The Government has fixed an effective rate of customs duty of 5% for 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
This of course is subject to the conditions that
A certificate is produced to the effect that the goods are required for initial setting up of a project for the generation of power using non-conventional materials.
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
the importer furnishes an undertaking that such imported goods will be used for the purpose specified and in the event of his failure to comply with this condition, he shall be liable to pay, the differential duty.
But why the restriction on municipal and urban waste? Why is the benefit not available to Panchayat and rural waste? Why is urban s..t more valuable than rural one?
NOTIFICATION. No. dated the 8th September, 2005