New Delhi, The Ministry of Commerce has asked the development commissioners of SEZs to consider applications from developers of these special economic zones for installation of solar power panels as per the existing SEZ guidelines for generation norms, transmission and distribution of energy.
In a communication to the Development Commissioners (DCs) of all special economic zones (SEZs), the Commerce Department said that several applications have been received from EPCES (Export Promotion Council for EOU and SEZ) as well as from developers of SEZ for installation of solar energy. electrical panels as capital assets in these areas for the generation of solar energy for captive use.
"The matter has been examined in consultation with the DGEP and CBIC. Accordingly, developing countries are requested to consider such requests from developers/co-developers" as per the energy guidelines issued on February 16, 2016 by the department, according to the communication.
The Directorate General of Export Promotion (DGEP) is an expanded arm of the Central Board of Indirect Taxes and Customs (CBIC).
As per those guidelines, a power plant, including a non-conventional power plant, to be installed by a developer/co-developer in a SEZ as part of an infrastructure facility will be in the non-processing area of the SEZ only.
You will be entitled to tax benefits only for its initial installation and no tax benefits will be admitted for its operation and maintenance. Such a power plant can supply power to the DTA (domestic tariff zone) after meeting the power requirements of the SEZ, subject to payment of customs duties.
SEZs are key export hubs that contributed to more than a third of the country's total outbound shipments in the last fiscal year.
These zones are areas that are treated as foreign territories for trade and customs duties, with restrictions on duty-free sales outside these zones in the domestic market.
The government has approved as many as 423 such zones, of which 280 are operational as of March 31 this year. In these areas, up to 5,711 units have been approved until December 31, 2023.
Exports from these zones rose more than 4 per cent to $163.69 billion in 2023-24, even though the country's total shipments fell more than 3 per cent in the last fiscal year.
In a communication to the Development Commissioners (DCs) of all special economic zones (SEZs), the Commerce Department said that several applications have been received from EPCES (Export Promotion Council for EOU and SEZ) as well as from developers of SEZ for installation of solar energy. electrical panels as capital assets in these areas for the generation of solar energy for captive use.
"The matter has been examined in consultation with the DGEP and CBIC. Accordingly, developing countries are requested to consider such requests from developers/co-developers" as per the energy guidelines issued on February 16, 2016 by the department, according to the communication.
The Directorate General of Export Promotion (DGEP) is an expanded arm of the Central Board of Indirect Taxes and Customs (CBIC).
As per those guidelines, a power plant, including a non-conventional power plant, to be installed by a developer/co-developer in a SEZ as part of an infrastructure facility will be in the non-processing area of the SEZ only.
You will be entitled to tax benefits only for its initial installation and no tax benefits will be admitted for its operation and maintenance. Such a power plant can supply power to the DTA (domestic tariff zone) after meeting the power requirements of the SEZ, subject to payment of customs duties.
SEZs are key export hubs that contributed to more than a third of the country's total outbound shipments in the last fiscal year.
These zones are areas that are treated as foreign territories for trade and customs duties, with restrictions on duty-free sales outside these zones in the domestic market.
The government has approved as many as 423 such zones, of which 280 are operational as of March 31 this year. In these areas, up to 5,711 units have been approved until December 31, 2023.
Exports from these zones rose more than 4 per cent to $163.69 billion in 2023-24, even though the country's total shipments fell more than 3 per cent in the last fiscal year.
