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GUIDELINES FOR POWER GENERATION IN SPECIAL ECONOMIC ZONES

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..... only in the Non-Processing Area of SEZs. Further, those power plants which are presently situated in Processing Areas of SEZs, shall be demarcated as Non-Processing Areas and no operation and maintenance (O M) benefits will now be available for such power plants. An action taken report in the matter may be furnished to this Department. ANNEX GUIDELINES FOR POWER GENERATION, TRANSMISSION AND DISTRIBUTION IN SPECIAL ECONOMIC ZONE (SEZs) LETTER [NO. P.6/3/2006-SEZ 1], DATED 27-2-2009 The undersigned is directed to say that various issues relating to setting up of power units and power distribution facilities in SEZs have been under examination of this Department in consultation with Ministry of Power/Department of Revenue a .....

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..... setting up, maintenance and the duty free imports of raw materials and consumables for the generation of the power in such plants. With respect to SEZs in sectors such a IT/ITES, Gem and Jewellery, Biotech, etc. where a minimum build up area is stipulated under the SEZ Rules an in respect of which generation of power has been approved by the Board of Approval as authorized operation to the Developer/Co-developer within the processing area, in such cases generation of power will be carried out as a unit without any separate demarcation of the area for that purpose. However, such unit will maintain separate accounts as a power generating unit. These units will enjoy duty free import of capital goods, raw materials and consumables for th .....

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..... ense While a generating company may establish, operate and maintain a generating station without obtaining a license under Electricity Act 2003 subject to compliance of the technical standards as specified in the said Act and conforming to the definition of generating company under the provisions of the said Act, distribution of power is a licensed activity as specified in Section 14 of the Electricity Act 2003 except the situation specified in the 8th proviso to the said section. Determination of tariff Tariff of the electricity for any sales within SEZs shall be determined in accordance with the provisions of the Electricity Act, 2003/Rules made thereunder. Creation of separate entities Separate entities can be created .....

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