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
GMRKAKINADA (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

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