Single power SEZs may get tariffs soon

NEW DELHI: The woes of standalone power sector special economic zones (SEZs) could soon be over. The problem of fixing an appropriate tariff (or duty) for sale of power by SEZs in the domestic tariff area will be soon sorted out.

The power ministry has worked out a formula to fix an appropriate tariff by SEZ units in the DTA, which would be in addition to the local levies applied on domestic power producers.

The formula will neutralise the value of all sops and other advantages a power SEZ enjoys over power producers in the DTA due to its SEZ status. Representatives from the power ministry, revenue department and commerce ministry are slated to meet this week to discuss the formula drafted by the power ministry.

Speaking to ET, sources said the formula would incorporate infrastructure costs and financial costs, which power SEZs manage to save because of their special status.

“Cost of power produced by SEZs would certainly be lower than that produced by domestic producers because of various advantages an SEZ has. It is fair to impose additional duties on power sale by such SEZs into the DTA to provide a level-playing field for all,” an official said.