Services provided under the Power System Development Fund Scheme of the Ministry of Power exempt from Service Tax

NOTIFICATION No 17/2015-ST, Dat­ed: May 19, 2015

G.S.R. (E). – In exer­cise of the pow­ers con­ferred by sub-sec­tion (1) of sec­tion 93 of the Finance Act, 1994 (32 of 1994), the Cen­tral Gov­ern­ment, being sat­is­fied that it is nec­es­sary in the pub­lic inter­est so to do, here­by exempts tax­able ser­vices pro­vid­ed under the Pow­er Sys­tem Devel­op­ment Fund Scheme of the Min­istry of Pow­er (here­inafter referred to as the Scheme), from the whole of the ser­vice tax levi­able there­on under sec­tion 66B of the said Act:-

by way of,-

(A) re-gasi­fi­ca­tion of Liq­ue­fied Nat­ur­al Gas import­ed by the Gas Author­i­ty of India Lim­it­ed (GAIL);

(B) trans­porta­tion of the incre­men­tal Re-gasi­fied Liq­ue­fied Nat­ur­al Gas (RLNG) (e‑bid RLNG) to the pow­er gen­er­at­ing com­pa­nies or plants as spec­i­fied in the Annexure‑I and Annex­ure ‑II to this notification,

sub­ject to the fol­low­ing con­di­tions, namely:-

(a) GAIL is appoint­ed as the ‘e‑bid RLNG Oper­a­tor’ for the gas based plants out­side Gujarat and Gujarat State Petro­le­um Cor­po­ra­tion Lim­it­ed (GSPCL) will be ‘e‑bid RLNG Oper­a­tor’ for the gas based plants with­in Gujarat and GAIL will be the only agency for the pro­cure­ment of e‑bid RLNG under the Scheme;

(b) sup­ply of import­ed spot RLNG ‘e‑bid RLNG’ to the Strand­ed gas based plants as well as the plants receiv­ing domes­tic gas, will be upto the tar­get Plant Load Fac­tor (PLF) select­ed through a reverse e‑bidding;

© the eli­gi­ble gas based pow­er plants under the Scheme shall be the Strand­ed gas based pow­er plants and those plants receiv­ing domes­tic gas whose actu­al aver­age PLF achieved dur­ing April-Jan­u­ary 2014–15 was below the tar­get PLF;

(d) in case of plants receiv­ing domes­tic gas (Annex­ure-II), Pow­er Sys­tem Devel­op­ment Fund Scheme (PSDF) sup­port being made avail­able only for incre­men­tal gen­er­a­tion of elec­tric­i­ty dur­ing the rel­e­vant peri­od over and above the PLF achieved dur­ing April- Jan­u­ary 2014–15, for exam­ple, if the PLF actu­al­ly achieved dur­ing April-Jan­u­ary 2014–15 is 20%, and if dur­ing the rel­e­vant peri­od the PLF is 25% from all sources includ­ing that from e‑bid RLNG, then PSDF sup­port will be made avail­able for the elec­tric­i­ty cor­re­spond­ing to 25- 20 = 5% PLF, but lim­it­ed to the actu­al gen­er­a­tion from e‑bid RLNG dur­ing that rel­e­vant period;

(e) the per­son liable to pay ser­vice tax pro­duces the fol­low­ing cer­tifi­cates as ver­i­fied by the Empow­ered Pool Man­age­ment Com­mit­tee (EPMC) con­sti­tut­ed by Min­istry of Pow­er vide Office Mem­o­ran­dum No. 4/2/2015-Th‑1 dat­ed 27th March, 2015, with­in a peri­od of three months, or such extend­ed peri­od not exceed­ing a fur­ther peri­od of six months as the Assis­tant Com­mis­sion­er or Deputy Com­mis­sion­er of Cen­tral Excise or Ser­vice Tax, may allow, before the juris­dic­tion­al Cen­tral Excise officer:-

(i) cer­ti­fi­ca­tion by Cen­tral Elec­tric­i­ty Author­i­ty (CEA) for each par­tic­i­pat­ing gas based plant regard­ing the quan­tum of elec­tric­i­ty to be gen­er­at­ed per unit of gas based on the tech­ni­cal para­me­ters of that plant;

(ii) cer­ti­fi­ca­tion by GAIL regard­ing quan­ti­ty of e‑bid RLNG gas sup­plied dur­ing the rel­e­vant period;

(iii) self-cer­ti­fi­ca­tion by the par­tic­i­pat­ing gas based plant regard­ing the quan­ti­ty of e‑bid RLNG gas actu­al­ly utilised dur­ing the rel­e­vant peri­od for gen­er­a­tion of elec­tric­i­ty, and Dis­com-wise sup­ply of such elec­tric­i­ty; and

(iv) cer­ti­fi­ca­tion by par­tic­i­pat­ing Dis­coms regard­ing the quan­tum of e‑bid RLNG based elec­tric­i­ty pur­chased dur­ing the rel­e­vant peri­od from par­tic­i­pat­ing gas based plants;

(f) the per­son, fail­ing to pro­duce the afore­said cer­tifi­cates before Cen­tral Excise Offi­cer with­in the stip­u­lat­ed peri­od, would pay the duty levi­able on such ser­vices along with the applic­a­ble inter­est thereon;

Pro­vid­ed that the exemp­tion shall not be avail­able if such Re-gasi­fied Liq­ue­fied Nat­ur­al Gas (RLNG) and Liq­ue­fied Nat­ur­al Gas (LNG), is used for gen­er­a­tion of elec­tri­cal ener­gy by cap­tive gen­er­at­ing plant as defined in clause (8) of sec­tion 2 of the Elec­tric­i­ty Act, 2003 (36 of 2003):

Pro­vid­ed fur­ther that noth­ing con­tained in this noti­fi­ca­tion shall apply on or after the 1st day of April, 2017.

Annex­ure – I
LIST OF STRANDED GAS BASED POWER PLANTS

S. No.	Name of Pow­er Station	Name of the State
(1)	(2)	(3)
1	RATNAGIRI (RGPPL-DHABHOL)	MAHARASHTRA
2	PRAGATI CCGT-III	DELHI
3	DHUVARAN CCPP(GSECL)	GUJARAT
4	UTRAN CCPP (GSECL)	GUJARAT
5	PIPAVAV CCPP	GUJARAT
6	DHUVARAN CCPP(GSECL)	GUJARAT
7	HAZIRA CCPP EXT	GUJARAT
8	VATWA CCPP (TORRENT)	GUJARAT
9	RITHALA CCPP(NDPL)	DELHI
10	ESSAR CCPP	GUJARAT
11	UNOSUGEN CCPP	GUJARAT
12	DGEN Mega CCPP	GUJARAT
13	GAUTAMI CCPP	ANDHRA PRADESH
14	GMR – KAKINADA (Tanir­vavi)	ANDHRA PRADESH
15	JEGURUPADU CCPP (GVK)	ANDHRA PRADESH
16	KONASEEMA CCPP	ANDHRA PRADESH
17	KONDAPALLI EXTN CCPP	ANDHRA PRADESH
18	VEMAGIRI CCPP	ANDHRA PRADESH
19	SRIBA INDUSTRIES	ANDHRA PRADESH
20	RVK ENERGY	ANDHRA PRADESH
21	SILK ROAD SUGAR	ANDHRA PRADESH
22	LVS POWER	ANDHRA PRADESH
23	GMR Vema­giri Exp	ANDHRA PRADESH
24	Kon­da­pal­li Exp St-III	ANDHRA PRADESH
25	Samalkot Exp	ANDHRA PRADESH
26	CCGT by Panduranga	ANDHRA PRADESH
27	Gas Engine by Astha	TELANGANA
27	Kashipur Sra­van­thi St‑I&II	UTTARAKHAND
28	Beta Infrat­e­ch CCGT	UTTARAKHAND
29	Gama Infraprop CCGT	UTTARAKHAND
30	CCGT by Pio­neer Gas Pow­er Ltd.	MAHARASHTRA

Annex­ure – II
LIST OF PLANTS RECEIVING DOMESTIC GAS
(Aver­age PLF dur­ing April, 2014-Jan­u­ary, 2015)

S. No.	Name of Pow­er Station	Installed Capac­i­ty (MW)		Name of the State	PLF (%) (April- Jan­u­ary, 2014–15)
(1)	(2)	(3)		(4)	(5)
1	NTPC, FARIDABAD CCP	431.59		HARYANA	42.3
2	NTPC, ANTA CCP	419.33		RAJASTHAN	47.9
3	NTPC, AURAIYA CCPP	663.36		UTTAR PRADESH	28.5
4	NTPC, DADRI CCPP	829.78		UTTAR PRADESH	34.6
5	NTPC, GANDHAR (JHANORE)	657.39		GUJARAT	31.0
6	NTPC, KAWAS CCPP	656.2		GUJARAT	31.8
7	I.P.CCPP	270		DELHI	41.2
8	PRAGATI CCGT-III	750		DELHI	33.5
9	PRAGATI CCPP	330.4		DELHI	66.2
10	DHOLPUR CCPP	330		RAJASTHAN	31.2
11	DHUVARAN CCPP(GSECL)	106.42		GUJARAT	17.1
12	HAZIRA CCPP(GSEG)	156.1		GUJARAT	16.0
13	UTRAN CCPP(GSECL)	144		GUJARAT	10.4
14	URAN CCPP(MAHAGENCO)	672		MAHARASHTRA	60.0
15	TROMBAY CCPP (TPC)	180		MAHARASHTRA	78.5
16	BARODA CCPP (GIPCL)	160		GUJARAT	3.1
17	GODAVARI (SPECTRUM)	208		ANDHRA PRADESH	28.4
18	JEGURUPADU CCPP (GVK)	235.4		ANDHRA PRADESH	25.4
19	KONDAPALLI CCPP (LANCO)	350		ANDHRA PRADESH	19.8
20	PEDDAPURAM (BSES)	220		ANDHRA PRADESH	11.6
21	VIJESWARAN CCPP	272		ANDHRA PRADESH	24.8
22	PEGUTHAN CCPP (GTEC)	655		GUJARAT	5.4
23	SUGEN CCPP (TORRENT)	1147.5		GUJARAT	25.6

[F. No.334/5/2015 ‑TRU]

(Akshay Joshi)
Under Sec­re­tary to the Gov­ern­ment of India