Govt. issues Guidelines for Power Generation, Transmission and Distribution in SEZs [Read Office Memorandum]

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Power Generation - Transmission - SEZs - Taxscan

The Government has issued the guidelines for Power Generation, Transmission, and Distribution in Special Economic Zones (SEZs).

Mr. Senthil Nathan S, the SEZ Director while writing to all the Chief Secretaries of all States/UTs; All Development Commissioners, Special Economic Zones; Ministry of Power, Shram Shakti Bhawan, Rafi Marg, New Delhi; DGEP, Department of Revenue; DG, EPCES notified that the partial modification of Power guidelines issued vide this Department’s Communication no. P-6/03/2006-SEZ (Vol. III) dated February 16, 2016.

“With the approval of Unit Approval Committee, a Unit may setup a non-conventional power plant within the premises of the Unit for the exclusive purpose of captive consumption subject to the condition that no tax/duty benefits stipulated under Section 26 of SEZ Act, 2005 shall be available for setting up as well as operations and maintenance of such power plant. Such captive generating power plants shall comply with all rules, regulations, and technical standards framed under the Electricity Act, 2003 as amended from time to time. Captive generative power plants with capacity 500 KW and above have to be re-registered with the Central Electricity Authority,” the government notified.

It was further stated that the other conditions laid down vide power guidelines dated February 16, 2016, and amendment dated January 28, 2019, shall remain unchanged.

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