Exemption from Payment of Electricity Duty in Special Economic Zones SEZs


The Government have issued orders under section 3A of the Andhra Pradesh Electricity Duty Act 1939 (Act No.V of 1939) granting exemption to the units set up in Special Economic Zone from the payment of Electricity Duty under section 3 in respect of power generated and consumed by them, subject to the condition that the electricity generated by the said units is utilized fully by them only.

Subsequently, The Government of Andhra Pradesh have inserted a new section 3 B to the Andhra Pradesh Electricity Duty Act, 1939 with effect from 17-7-2003.  As per the said section, every person or generating company who generates energy and uses for his own purpose shall pay every month to the state Government, a duty calculated at the rate of twenty five (25) paise per unit of energy on and in respect of such energy consumed during the previous month.

The Development Commissioner, Visakhapatnam Special Economic Zone has informed that, the G.O. 1st read above was issued in the year 2002, when there was no private Special Economic Zone developers except APIIC in the State.  Under the provisions of Special Economic Zones Act 2005 and Special Economic Zones Rules, 2006 the State of Andhra Pradesh has got higher number of notified Special Economic Zones.  In majority of the cases, the developers provide power to Units by purchasing it from State.  Hence, he has requested to extend the exemption from payment of Electricity Duty also to the “Purchase of electricity Power” and provided to Units apart from to Captive generation units.

Government, after careful examination of the matter, and in supersession of the notification issued in G.O.Ms No.110, Energy

(Pr-III) Dept. dt. 16-09-2002 hereby decide to grant exemption from payment of Electricity Duty, to the units set up in Special Economic Zone in respect of power generated and consumed by them, subject to the condition that the Electricity generated by the said units is utilized fully by them only.

G.O.Ms. No. 8 Dated: 02-02-2013 Read the following:

1. G.O.Ms No.110, Energy(Pr. III) Dept., Dt 16-9-2002.
2. From the Development Commissioner, Visakhapatnam Special Economic Zone, D.O.Lr No.DC/VSEZ/2010/ 2892, Dt. 16-8-2010.

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