LNG for power projects exempted
Liquefied Natural Gas, imported for generating power by Ratnagiri Gas and Power Private Limited at their power project at Dabhol, District Ratnagiri, (Maharashtra) was exempted from customs duty. Now the exemption is extended even when the LNG is imported by any other Liquefied Natural Gas Mega Power Project which,
(i) is established with an installed power generation capacity of 2000 MW or more, with integrated Liquefied Natural Gas re-gasification facility;
(ii) became defunct and is subsequently restructured and revived through a Special Purpose Vehicle in the nature of a project company owned by the Public Sector Undertakings as per a restructuring and revival proposal approved by the Central Government; and
(iii) supplies the power generated in such project to any State Electricity Board under a Power Purchase Agreement.
NOTIFICATION NO. ,Dated: August 28, 2006