Lok Sabha Question No. 295 (UNSTARRED), answered on 2016-02-25
Subject: Concession to Gas based Power Plants
Ministry: POWER
Asked by: ELUMALAI VELLAIGOUNDER

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.295 TO BE ANSWERED ON 25.02.2016

## CONCESSION TO GAS BASED POWER PLANTS

295.   SHRI V. ELUMALAI:

Will the Minister of POWER be pleased to state:

(a) the  details  of  specific  concessions  like  waiver  of  custom  duty,  VAT,  etc. having extended to gas based power plants;

(b) the details of the cost of taxing per unit of gas, coal, hydro, solar based power plants respectively; and

(c) the details of concessions given to power plants other than gas based plants?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, COAL AND NEW & RENEWABLE ENERGY

( SHRI  PIYUSH GOYAL )

(a) : Government  has exempted Customs Duty on imported LNG used for power generation. Government of India has sanctioned a scheme for importing  spot RLNG  in 2015-16  and  2016-17  for  the  stranded  gas  based  power  plants  as  well  as  for  plants receiving  gas  upto  the  target  PLF  selected  through  reverse  e-bidding  process.  The concessions provided for under the scheme are as under:

- (i) Custom duty waiver on imported LNG;
- (ii) Waiver of Value Added Tax, Central Sales Tax, Octroi and Entry Tax ;
- (iii) Waiver of Service Tax on regasification and transportation;
- (iv) Reduction in pipeline tariff charges, regasification charges and marketing margin;
- (v) Exemption  from  transmission  charges  and  losses  for  stranded  gas based power projects.

(b) : There  is  no  tax  on  generation  of  power  for  gas  /  coal  /  hydro  /  solar based power plants.

- (c) : Concessions  given  to  power    plants  other  than  gas  based  plants  are given at Annex.

***********

## ANNEX REFERRED TO IN REPLY TO PART (c) OF UNSTARRED QUESTION NO. 295 TO BE ANSWERED IN THE LOK SABHA ON 25.02.2016.

***********

- (i) Under the Mega Power Policy, power projects are given benefits for Zero Customs Duty for  import  of  capital  equipment, Deemed Export Benefits under Chapter  8 of Foreign Trade Policy (FTP). Mega Power policy is withdrawn for new projects other than those already issued mega/provisional mega certificates before 19.07.2012.
- (ii) A 10 year Income Tax holiday for power projects commissioned before 01.4.2017.
- (iii) The concessions/incentives offered by the Government for solar power plants are as follows:
- (iv)
- (a) Grant of subsidy on off-grid applications (b) Provision of Renewable Purchase Obligation (RPO) for solar has been made in the National Tariff Policy. (c) Generation Based Incentives (GBI) and facility for bundling power grid connected solar power projects through various interventions announced from time to time. (d) Grant of Viability Gap Funding (VGF). (e) Renewable Energy Sector has been awarded Priority Sector Lending status. (f) Concessional Import duty/Excise duty exemption for setting up of solar power plants, accelerated depreciation and tax holiday. (g) Roof-top Solar PV systems have been made eligible for home loans. (h) Tax free green bonds of INR 5,000 crores. (i) Creation of Payments Security Mechanism. (j) Development of solar parks. (k) Setting up of green Energy Corridors. (l) Waiver of wheeling charges on Inter -State Transmission system (ISTS) network The concessions / incentives offered by the Government for wind energy is as follows : (a) The Govt. provides fiscal incentives such as 80% accelerated depreciation and 10 years Income Tax holiday. concessional custom duty on import of specified components and excise duty exemptions  provided  towards  manufacturing  of  wind  electric  generators  and  parts
- ***********
- (b) thereof.