| The proposal's formal clearance has been delayed because the revenue department fears revenue loss from a 7,480 Mw power plant to be located in the SEZ. |
| Officials told Business Standard that a formal clearance of the SEZ was pending though the Board of Approval in the commerce department had given in-principle clearance to the project in March this year. |
| Reliance Energy did not respond to a questionnaire Business Standard e-mailed yesterday. |
| As a thumb rule, the government allows a utility located in an SEZ to provide 49 per cent of services outside the zone. The revenue department is, however, not in favour of using this rule for utilities like power plants. |
| As per the policy, power plants in SEZs, which are built by the developer and the co-developer of the zones, are exempted from paying Customs duty, minimum alternate tax (MAT) and dividend distribution tax (DDT). |
| A mega power plant in the domestic tariff area is entitled to only a waiver of Customs duty. Officials said the finance ministry had sought comments from the power ministry as the Dadri plant could later raise tariff issues if a significant portion of electricity generated by it was sold outside the zone. |
| They said over 80 per cent of the electricity would be sold outside the designated area as consumption within the zone was estimated at 400-500 Mw. |
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