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Customs duty waiver to power projects

Customs duty waiver to power projects
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On the basis of a provisional certificate issued by the Finance Ministry, duty-free import of power equipment by mega power project developers is set to be allowed qualifying the developers for a waiver. The move will help to accelerate the commissioning of the GMR, Jindal Power, GVK and Hinduja power projects.

The certificate will be iss­ued after the developers furnish a fixed deposit receipt (FDR) of an amount equivalent to the duty payable on equipment import.

This would mean that the developers won't have to wait for the formal mega power tag, which usually gets delayed, for availing the import duty waiver they are entitled to.

The cha­n­ges have been incorporated in order to accelerate construction of po­wer pla­nts and to bridge the widening energy deficit. The changes will be­nefit both public and private sector projects.

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