In a significant move towards promoting renewable energy, the Government of India’s Ministry of Commerce & Industry has issued guidelines for the procurement and installation of solar power panels by Special Economic Zone (SEZ) developers. This directive, outlined in Instruction No. 116, dated June 21, 2024, addresses the need for sustainable power solutions in SEZs, emphasizing the installation of solar panels for captive power generation. The guidelines aim to streamline the process for SEZ developers and co-developers, ensuring compliance with existing regulations and promoting eco-friendly practices within SEZs.
Detailed Analysis
The new guidelines respond to numerous requests from SEZ developers and the Export Promotion Council for EOUs & SEZs (EPCES) for the inclusion of solar power panels as capital goods within SEZs. The Ministry, after thorough consultations with the Directorate General of Export Promotion (DGEP) and the Central Board of Indirect Taxes and Customs (CBIC), has instructed Development Commissioners to consider these requests per the Power Guidelines issued on February 16, 2016.
Key Points of the Guidelines:
1. Scope and Objective: The guidelines aim to facilitate the installation of solar panels in SEZs to ensure an uninterrupted power supply in common areas, thereby reducing reliance on non-renewable energy sources and promoting sustainability.
2. Approval Process: Development Commissioners are authorized to evaluate and approve requests for the procurement and installation of solar panels. This process is to be carried out in accordance with Paragraph 1(i) of the 2016 Power Guidelines, ensuring that all installations meet the necessary regulatory and safety standards.
3. Benefits for SEZ Developers: SEZ developers who adopt solar energy solutions can significantly lower their operational costs by reducing electricity expenses. Additionally, this move aligns with the global shift towards renewable energy, potentially attracting environmentally conscious investors and clients.
4. Compliance and Monitoring: The guidelines mandate strict compliance with existing regulations to ensure the safe and efficient operation of solar installations. Regular monitoring and reporting mechanisms will be in place to track the progress and effectiveness of these installations.
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Instruction No. 116
No. K-43014/34/2023-SEZ
Government of India
Ministry of Commerce & Industry
Department of Commerce
SEZ Section
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Vanijya Bhawan, New Delhi
Dated the 21st June, 2024
To
The Development Commissioners
All Special Economic Zones
Subject: – Guidelines for Procurement / Installation of Solar Power Panels by SEZ Developers to provide power supply in common areas of Special Economic Zones – reg.
Sir /Ma’am,
Department of Commerce has received various requests from EPCES as well as SEZ Developers for Installation of Solar Power Panels as Capital goods in SEZs for Solar Power Generation for captive use.
2. The matter has been examined in consultation with DGEP, CBIC. Accordingly, the Development Commissioners are requested to consider such requests from Developers/Co-developers in terms of Para 1(i) of the Power Guidelines dated 16.02.2016 issued by this Department.
3. This issues with the approval of the Competent Authority.
Yours sincerely,
(Ashish Prakash Sinha)
Under Secretary to the Government of India
011-23039730
Email: ashishprakash.sinha@nic.in
Copy for information to:
i. DG, DGEP, CBIC, DoR
ii. DG, EPCES
