This is a Simplified diagram please refer the new MNRE procedure document in detail
After considering the request of power project developers for simplification of the existing procedure for issue of CDC and EDEC, to avoid delay at various stages including State Nodal Agencies, MNRE has decided to modify and simply the procedure being followed for issue of Concessional Customs Duty Certificate (CCDC) and Excise Duty Exemption Certificates (EDECs), in respect of items, equipment etc. required for initial setting up of Solar PV and Solar Thermal Solar Thermal power projects.
MNRE has also decided that this simplified procedure shall be effective and applicable to all new projects or fresh cases/ applications which will be received after the date of issue of this Office Memorandum, as a large number of solar PV power projects (28 Nos.) have been allotted by NVVN in Phase-I Batch-II which have already started approaching the MNRE for issue of certificates under the existing procedure.
However, such solar power project developers, for whom the MNRE has already started issuing certificates under the existing procedure, and who wish to switch over to the modified procedure, will have to re-submit the total ‘Bill of Material’ through concerned SNAs as per modified procedure, and reconcile the quantity for which certificates have already been issued for their projects under the existing procedure.
Click here to view the Simplified Procedure document.
Modified Procedures explained:
1.
(a) The Total Bill of Material may be submitted in the format at Annexure B1 to State Nodal Agency (SNA) by the project developers at least 1 month prior to seeking Concession Customs Duty Certificates (CCDC)/ Excise Duty Certificate (EDEC) as the case may be, duly certified by the Chartered Engineer. The concerned State Nodal Agency shall then forward the same to MNRE for approval.
(b) At this stage, the developers would be required to submit basic documents such as PPA, Evacuation Agreement with STU/DISCOM, documents pertaining to land to the State Nodal Agency along with the Total Bill of Material duly certified by the Chartered Engineer. (Condition of providing copy of PPA is desirable only in case of REC plants/merchant plants/research projects. In all other cases, PPA is mandatory)
(c) The State Nodal Agency shall forward the above documents application and Total Bill of Material to MNRE after verification.
2. CCDC, EDEC or both, as the case may be, shall be issued by MNRE for each Purchase Order. The proposal for CCDC/EDEC, along with copy of Purchase Order, may be submitted to MNRE through empanelled Chartered Engineer who shall certify the quantity with respect to the approved Total Bill of Material and also having regard to the provisions/conditions of Excise notifications No.15/2010-Central Excise dated 27.2.2010 and amendment Notification No.26/2012-Central Excise, dated 8th May 2012 and also the provisions of Customs Notifications No.01/2011-Customs dated 06/01/2011 and No.21/2012- Customs dated 17/03/2012 and amendment Notification No.32/2012-Customs, dated 8th May 2012 issued by Ministry of Finance (Deptt. of Revenue). In the event of any excess quantity with respect to Total Bill of Material, the Chartered Engineer shall certify the excess quantity clearly endorsing the reasons for such increase.
3. Government of India’s notifications, as refer to above, only require MNRE to certify the quantity that needs to be exempted and that the exempted goods are intended to be used for specified purpose.
4. Upon achieving commercial operation, the project developer shall submit a reconciliatory statement for all equipment or items with respect to Total Bill of Material.
Click here to view the Simplified Procedure document.
Modified Procedures explained:
1.
(a) The Total Bill of Material may be submitted in the format at Annexure B1 to State Nodal Agency (SNA) by the project developers at least 1 month prior to seeking Concession Customs Duty Certificates (CCDC)/ Excise Duty Certificate (EDEC) as the case may be, duly certified by the Chartered Engineer. The concerned State Nodal Agency shall then forward the same to MNRE for approval.
(b) At this stage, the developers would be required to submit basic documents such as PPA, Evacuation Agreement with STU/DISCOM, documents pertaining to land to the State Nodal Agency along with the Total Bill of Material duly certified by the Chartered Engineer. (Condition of providing copy of PPA is desirable only in case of REC plants/merchant plants/research projects. In all other cases, PPA is mandatory)
(c) The State Nodal Agency shall forward the above documents application and Total Bill of Material to MNRE after verification.
2. CCDC, EDEC or both, as the case may be, shall be issued by MNRE for each Purchase Order. The proposal for CCDC/EDEC, along with copy of Purchase Order, may be submitted to MNRE through empanelled Chartered Engineer who shall certify the quantity with respect to the approved Total Bill of Material and also having regard to the provisions/conditions of Excise notifications No.15/2010-Central Excise dated 27.2.2010 and amendment Notification No.26/2012-Central Excise, dated 8th May 2012 and also the provisions of Customs Notifications No.01/2011-Customs dated 06/01/2011 and No.21/2012- Customs dated 17/03/2012 and amendment Notification No.32/2012-Customs, dated 8th May 2012 issued by Ministry of Finance (Deptt. of Revenue). In the event of any excess quantity with respect to Total Bill of Material, the Chartered Engineer shall certify the excess quantity clearly endorsing the reasons for such increase.
3. Government of India’s notifications, as refer to above, only require MNRE to certify the quantity that needs to be exempted and that the exempted goods are intended to be used for specified purpose.
4. Upon achieving commercial operation, the project developer shall submit a reconciliatory statement for all equipment or items with respect to Total Bill of Material.
Article Written by Rahul R Prabhu
More Queries contact: rprabhu@renewindians.com
