8.4.6

Supply of capital goods and spares upto 10% of the FOR value of the capital goods to the power projects in terms of paragraphs 8.2(g) shall be entitled for deemed export benefits provided the International Competitive Bidding procedures have been followed, at Independent Power Producer (IPP)/Engineering, Procurement and Construction (EPC) stage. The benefit of deemed exports shall also be available for renovation/ modernisation of power plants. The supplier shall be eligible for benefits listed in paragraph 8.3(a) and (b) of the Policy.

However, supply of goods required for setting up of any mega power projects as specified in S.No.400 of Department of Revenue notification No.21/2002-Customs dated 1/3/2002, as amended, shall be eligible for deemed exports benefits as mentioned in paragraph 8.3(a)(b) and (c) of the Policy, whichever is applicable, if such mega power project is-

(a) an inter state thermal power plant of a capacity of 1000 MW or more; or

(b) an inter-state hydel power plant of a capacity of 500 MW or more.