Power companies looking to set up plants in Special Economic Zones (SEZ) may soon be exempted from the positive net foreign exchange (NFE) obligation applicable to regular units in such enclaves.
The proposed move is expected to help power companies such as Torrent Energy, Welspun Energy and AES that have plans to operate in SEZs. Most power firms have not been actively considering setting up plants in SEZs due to feasibility concerns arising from the positive NFE norm (foreign exchange from exports should exceed imports).
Currently, the Revenue Department treats a power plant in the processing area just as any other export unit and not as an infrastructure facility or developer or co-developer.