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Guidelines for Power Generation, Transmission and Distribution in Special Economic Zone (SEZs)

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..... nd Ministry of Law. After due consideration of the comments/ views received form these Ministries, following guidelines are hereby laid down: ` Generation, transmission and distribution of power in SEZs i) Power plant set up by developer/Co-developer A power plant to be set up by developer/ co-developer in an SEZ as part of infrastructure facility will be in the non processing area of SEZ and will be entitled to fiscal benefits only for its initial setting up and no fiscal benefit would be admissible for its operation and maintenance in terms of Rule 27(3) of the SEZ Rules . There will be no obligation to achieve positive Net Foreign Exchange Earning (NFE) for such power plants. Constituents to whom it can supply power .....

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..... the generation of power and such duty free imports of capital goods, raw material and consumables etc. would be counted towards the NFE obligations of the unit. Constituents to whom it can supply power Such a unit can supply power to other SEZ Units located in the processing area of he same SEZ/SEZ units located in the processing area of other SEZs, facilities located in the non processing area of the same SEZ/facilities located in the non processing area of other SEZs facilities located in the processing area of the same SEZ/facilities located in the processing area of other SEZs and DTA. iii) A single power plant in an SEZ. A single stand alone power plant can be set up in an SEZ in which there would be no other units. Suc .....

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..... entities can be created for generation/transmission and distribution of power. DTA clearance/clearance from processing area to non processing area and duties thereon In respect of power supplied from 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 by the regulator and the unit. For such clearance the quantity of duty shall be laviable at such rate as much be notified as customs tariff by the Department of Revenue on the advise of the Ministry of Power and the Ministry of Commerce, read with Section 30 of SEZ Act, 2005 . Such power plants would ensure maintenance od separate meter for supply of power from processing to constituents in non pro .....

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