Exemption to goods used for setting up mega power projects – Special concession to J&K and NE states

By Vijay Kumar

As per the existing notification, goods required for setting up of a Mega Power Project are exempted if the project is an inter-State thermal power plant of a capacity of 1000 MW or more; or an inter-State hydel power plant of a capacity of 500 MW or more. Now for the states ofJammu and Kashmir, Sikkim, Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland and Tripura, the capacity is reduced to 700 MW and 350 MW respectively for the exemption. Relatively less mega projects in these states will also be eligible for this exemption now.

One of the conditions for availing this benefit was that

the power purchasing State has agreed to provide recourse to that State’s share of Central Plan allocations and other devolutions towards discharge of any outstanding payment in respect of purchase of power;

Now this condition is omitted.

NOTIFICATION NO. 49/2006-Cus., Dated: May 26, 2006