Section 22(7) in The Special Economic Zones (Customs Procedures) Regulations, 2003
(7)Where the zone unit has surplus power generated in its captive power plant or diesel generating set, such surplus power may be allowed to be transferred to domestic tariff area on payment of duty on consumables and raw materials used for generation of power so sold on the basis of norms worked out for raw materials and consumables used, as may be approved by the Board of Approvals subject to the following conditions, namely:-(i)the proposal for sale of surplus power received in the office of the Development Commissioner shall be examined in consultation with the concerned State Government including State Electricity Boards of that State;(ii)the norms for production of unit of power that may be finalized shall be submitted to the Board of Approval for consideration;(iii)in case of sale of surplus plus to other unit in the same zone or other zone or to other export oriented undertaking or to electronic hardware technology park unit or to other software technology park unit, as the case may be, the same shall be allowed without payment of duty:Provided that the quantity of consumables and raw materials used for generation of power so transferred to another special economic zone unit or export oriented undertaking, electronic hardware technology park unit or software technology park unit, as the case may be, as quantified and approved by the Board of Approvals is accounted for by the supplying as well as receiving units for the calculation of Net Foreign Exchange Earning.
