Commerce Ministry’s fresh norms for power generation in SEZ and IT/ITeS Zones
Q. Commerce Ministry has issued norms for power generation in which areas?- Published on 22 Feb 16a. SEZ
b. EEZ
c. IT/ITES Zones
d. Both a and c
ANSWER: Both a and c
Commerce Ministry has stipulated fresh norms for power generation in SEZs and the government has come out with new guidelines for establishing power plants in SEZs. The norms also state there will be no fiscal benefits towards maintenance. According to modified norms, power plants to be set up in IT/ITeS zones will require uninterrupted power supply as stability in frequency will be entitled for fiscal incentives for establishment and maintenance of generating units. Norms also state that power plant including non-conventional energy power plant to be established by developer/co-developer in SEZ as part of infrastructure facility will be in the non-processing area of SEZ alone and will be entitled to fiscal benefits for initial establishment and no fiscal benefit would be there for operation and maintenance. The norms also said that setting up of captive power plants such as non-conventional energy could be allowed within the processing area as a unit subject to net foreign exchange earning obligations. Such power plants will be entitled to fiscal incentives. Guidelines also said SEZ connected to state/national grid will be allowed for creating back up power facility.
