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Goods for mega power projects can be imported duty-free
9 August 2010: The Union Government has amended the conditions for grant of excise duty exemption for goods supplied to mega power projects.
Now, the project developers, instead of the manufacturers, have been made liable to pay the duty in case they do not ensure that exempted goods are used only in their projects. Besides, the power to attest the list of goods required for setting up the projects has been given to the chief engineer of the Central Electricity Authority.
Thermal power projects that can generate 1,000 MW power and hydel power projects that can generate 500 MW power are referred to as mega power projects. The threshold limits are 700 MW and 350 MW for projects located in Jammu and Kashmir and states in the North-East. Goods required for such mega power projects can be imported duty free. Locally produced goods, which are supplied to such projects, can be cleared without excise duty payment.
Source: Business Standard