New Delhi: The government has issued fresh guidelines allowing a power plant the fiscal exemptions of the special economic zone (SEZ) if it is set up in the ‘processing’ area of the tax-free zone.
The norms allow the SEZ exemptions not only to the specific zones relating to the power sector like that of the Adani group in Gujarat, but plants set up in the processing area for captive energy consumption would also stand to benefit.
The power plants set up in the ‘processing’ (operational) area’ will be eligible not only for duty free imports of capital equipment but also raw material like feedstock and consumables for generation, according to the commerce ministry guidelines.
However, if the power unit promoted by the developer and co-developer is outside the ‘processing’ area of an SEZ, the benefits would be limited to import of the capital equipment, since the facility would be considered as an infrastructure supporting the main SEZ.
The new rules will help SEZs like those of the Adani Group, Wardha Power Co Pvt Ltd, and the Maharashtra Industrial Development Corporation.
The ministry has also clarified certain issues relating to the port SEZs. It said while the ports will be located in the non-processing area of the SEZ, there will be a clear demarcation from the rest of the zone.