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Concessions for power plants in SEZ

Govt. of India has issued fresh guidelines related to power generation in SEZ. According to the new guideline, a power plant will enjoy tax benefits akin to other industries in the SEZ. If the power plant is set up in the processing area, it will enjoy duty free capital equipment, raw material feedstock and other consumables for power generation. However, if the power generation unit is set up outside the processing area, then the benefits will be limited to that of duty free capital equipment but will not extend to consumables. For ports, there will be clear demarcation of processing area and accounts have to be maintained separately for power generation units.

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