THE
PROCEEDINGS OF GOVERNMENT OF KARNATAKA
Sub:
State Policy for Special Economic Zone, Hassan – Energy Department
Order.
Read:
Government Order No. C & I 282 SPI 2001 dated 25.2.2002.
PREAMBLE:
In the Government Order dated 25.2.2002 read above,
Government has formulated a State Policy for Special Economic
Zones and under this policy, Karnataka Industrial Area Development
Board (KIADB) will be the Special Agency for implementation of
Special Economic Zones either independently or in association with
the private sector partners. Special Economic Zone Authority
shall administer the incentives and concessions as provided for in
the Special Economic Zone Policy. The policy incorporates certain
measures relating to the Power Sector.
In order to opeartionalise the Special Economic Zone,
there is an urgent need for issue of consequential
notifications/orders relating to the ‘Special Economic Zone,
Hassan’. Hence, the following order
GOVERNMENT ORDER No.DE 201 PTC 2001, BANGALORE DATED 8th
MAY 2003
In the circumstances explained above, Government of
Karnataka is pleased to permit:-
1)
Establishment of independent power plants within the
Special Economic Zones by public sector enterprises or Joint
Venture Companies which can undertake generation, transmission and
distribution besides fixing tariffs for the Zone. Third party
sales within the Zone are permissible. If IPPs intend to sell the
power for a fixed tariff to the consumers as category, then these
IPPs require license from KERC for supplying the energy and they
will also have to get the tariff fixed by KERC. Any policy
directives issued by the Government will be subject to the
provisions of KER Act, 1999.
2)
The IPPs may establish grid connectivity so as to draw
power from the grid as standby arrangement subject to their
entering into a separate agreement with KPTCL on mutually
acceptable terms. All such arrangements will be further subject
to the following:
a)
It should be ensured that on account of agreeing for
wheeling arrangement, there should not be any extra cost/burden to
the KPTCL/Escoms.
b)
It should be ensured that the energy saved on account of
wheeling arrangement should be sold to any other consumers, at the
point of injection or point of supply, who pay above the cost of
supply or above realization rate.
c)
Such arrangement should not result in KPTCL/Escom to
procure more/costlier power to arrange power supply to the third
party by ‘displacement method’.
3)
Industrial units and other establishments in the Special
Economic Zone for which no IPP has been established are permitted
to generate their own power for captive use. This type of
arrangement can be ensured to be viable and acceptable only if the
same is done through a dedicated network outside the KPTCL grid.
4) In Notification No.DE 210 EEB 95 dated 18.6.1997 CPGs
have been exempted from payment of electricity tax for captive
generation. The same Notification holds good for the Special
Economic Zone, until further orders.
5)
IPPs and CPGs within the SEZ will be allowed, to procure
fuel used for power generation at a concessional tax of 4%.
Finance Department will issue separate orders in this regard.
6)
A Senior Officer of the Electricity Supply Company will be
a Member of the Special Economic Zone Authority. He would be
delegated adequate power to approve sanction of power from the
Electricity Supply Company (ESCOM) wherever required, subject to
the above mentioned conditions and also any conditions imposed by
ESCOM.
7)
The rate for selling power to State Electricity
Board/Electricity Supply Companies by IPPs will be determined by
the KERC.
BY
ORDER AND IN THE NAME OF
THE
GOVERNOR OF KARNATAKA
Sd/-
(B K
SRINIVASA RAO)
Under
Secretary to Government,
Energy
Department |