Mega power policy: Power producers call for removal of restrictions on customs exemptions

Clearly trying to make hay while the sun shines, various private power utilities, represented by the Association of Power Producers, have appealed to the government to do away with the restrictive stipulations surrounding the customs and excise exemptions available under the Ministry of Power's Mega Power Policy, which, however, is itself in the danger of being scrapped altogether.

•  The producers have asked that the government extend such fiscal sops to all inputs needed to construct mega power projects. At present, the same is allowed to just capital goods and machinery, because of which other goods, like special steels and other material, integral to such projects, are still subject to levies.
• The government acceding to this request would entail modification to the appropriate Customs Notification. 8Pertinently, customs exemption to large sized projects under the Mega Power Policy is one of the major incentives provided by the government to promote the development of the power sector in the country.