On 3rd March 2019, The Government approved Adani Power’s Special Economic Zone (SEZ) project in Godda district in Jharkhand. The entailing investment of the company is around Rs. 14,000 crores. The company has acquired 425 hectares of land from the state government. The entire power generated from the SEZ project will be exported to Bangladesh. Adani Power has entered into a power purchase agreement of supplying 100% of power generated from these plants to Bangladesh.
Furthermore, Adani Power received formal approval for the land in possession of 222.68 hectares. The remaining hectare approval was given in principle i.e. 202.32 hectares.
Approval for the project:
The company got approval by the board chaired by the commerce secretary in the meeting held on 25th February 2019.
The company has planned to set up 2 supercritical power units of 800 Megawatt each at Rs. 14,000 crores. This Rs 14,000 crores will include power evacuation system and water pipeline. The estimate guideline for completion of both the projects is by the end of 2022.
Supercritical Power unit of 800MW:
The supercritical power unit is a steam generator and one type of boiler. It works at supercritical pressure. This power plan is used to generate electric power. Higher the pressure and increasing temperature also increase the efficiency of the thermal power plant.
Moreover the plant set-up of sector-specific SEZ power at the villages of Mali, Gaighar,moli and also adjacent villages in Godda district of Jharkhand.
On January 30, 2018, Adani Power had first sought approval for SEZ Jharkhand plant with an investment of Rs. 15,002 crores. The company wanted to acquire 425 hectares. For this, the company had made adequate advances for this power plant
Later, on 11th February 2018, The Inter-ministerial board chaired by the Ministry of Commerce rejected the proposal on the grounds that the proposal made inconsistent in accordance with the guidelines of power sector dated on February 16, 2016. Further, there was no recommendation from the state government and after effective deliberation, the board of members refused the proposal.
Perks of Special Economic Zone (SEZ):
The SEZ is the key hubs for the export of goods and services across India. Furthermore, the government provides special incentives including single window clearance and tax benefits
In addition to this, the builders and the units of these SEZ enjoy fiscal and non-fiscal benefits. Benefits like complete freedom for subcontracting, no license requirement for import. Also there aren’t any routine examination by customs authority of Import and export cargo. Further, they also enjoy indirect and direct tax benefits from the government of India.
In FY18, the exports accounted for Rs. 5.52 crores, it was an increase of 15% on a YoY basis.