Office Memorandum

Subject:­ Grant of exemption of Excise Duty and Concessional Custom Duty on the procurement of material/components required  for  setting  up  of  "Mini­  Grid  &  Micro  Grid"  Solar  Photovoltaic  Power Plants.

The undersigned is directed to say that the Solar  Power  Developers  setting  of,  Off Grid Solar PY projects  have  been  approaching  this  Ministry  for  gran t  of  duly  bend,:, under the Ministry  of  Finance  ( Dept.  of Revenue)'s  Notifications  No.  15/20l 0-Central Excise dated 27-02-201 2 as amended vide Notification No. 26/201 2-Ccntral Excise  date, 08-05-20 12  and  also  another  Notification  No.  01 /201 1-Customs  dated  06-01 -201 1  and  N"  2 l /2012-Customs dated 17-03-2012 which was later amended vide Notification N e• . 32/2012-Customs dated 08-05-2012. They have  been  emphasizing  tbc  need  to  extend the  above exemption to all the solar power plants being  set up under  the  Off-Grid  so as to bring  down  the  cost of Off  Grid  projects  and  thereby  the  cost  of generation.

The matter of extending the benefits of duty exemption/concessions to the oil­ grid solar photovoltaic power plants has been under consideration in this Ministry for some time past. After examination of various issues  involved,  it  has  been  decided  to  give  duty exemption  certificates,  with  immediate  effect,  to  all  mini-grids  and  micro-grid  base' solar photovoltaic power  projects,  irrespective of size, i n order lo encourage L bi s  sector.

The procedure which is indicated  n this Ministry 's previous  OMs of even  number dated   17 January  201 3  and   1st  July  2013  shall  also  be  applier!, mutatis  mutandis   for  is:, u of  certificates  for  Excise  Duty  Exemption   (EDE)  or  Concessional  Customs  Duty  (CCD I t· , all  m ini-grids  and  micro-grid   based   solar   projects.   Copies   of   the   aforesaid   OMs   or available on the Ministry’s website  ww1v.mre.gov.in However,  since  some  of  the   informalities  are  to  be  completed  specially  for  issue  of  the  certificates  lo  mini-grid   an d  micro grid solar plants,  a  separate  and  simple  procedure  and  the  application/BoM  format:;  have  been   prepared   and   enclosed for  issue  o f  Excise   Duty   Exemption   Certificate  (EDE), or Concessional Customs Duty Certificates (CCDC) for  this  purpose.  All  the  developer’s  who want lo set up mini-grid and micro grid solar plants shall henceforth submitted applications/BoM online i n the enclosed formats, to the Director (NSM) in  this  Ministry  through Channel Partner/System Integrator or State Nodal Agency/ Central Govcrnmc111 organizations, as the case ma y be, after duly signed by the authorized officer of the soL11 project  and  Chartered  Engineer,  along with  the  following documents:-

( I) Details of Land Area, with proof of possession of land/location/site for setting up mini grid/micro-grid  solar plants. It includes lease agreement,  copy  of building ownership, etc.

( 2)  Chartered Accountant's Certificate on the estimated project cost, with detailed   break-up,:

(3 )   Application/BoM    duly   signed   by   the   Chief   Executive   Officer   of   the   project   or authorized  signatory  or the project company;

(4) Application/BoM duly certified by Chartered Engineer  with i ts  Stamp I Member  No. all date;

(5)  Application/BoM duly recommended  & signed by the Channel Partner/System Integral or Stale Govt. Deptt./Designated Agency/SNA/ Central Government organizations, as the case may  be, with  office  Seal;

(6)    Detailed  Project  Report (DPR);

(7)  copy of EPC  Contract  or Agreement;

(8) Single Line Diagram (SLD)/ Detailed  Drawings  with  justification  of  requirement  of  cable: Module mounting structures,  Inverter, etc.

(9) Two Affidavits in the prescribed format, on Hundred Rupees Stamp Paper, one each for CCDC and  EDEC.  Formats  are available on MN RE  website.

 The   Application   and   Bill   of  Material   (BOM),   duly   certified   by a  Chartered Engineer, shall be submitted  to MN RE  online through  Channel  Partner/System  Integrator or State Nod a l Agency/ Central Government organizations, as the case may  be.  Once  the FIOM   has   been   approved   by   MN RE   and   uploaded    on    the    MNRE's    portal http://1 64.100.194.45/ccms, the Channel Partner or System Integrator, etc. should generate exemption certificate online and submit the hard copy, after duly signed in i nk, and also certified by the Chartered  Engineer, d i rect to the  MNR E along with pro-forma  i nvoices  of the crit i cal i n puts such  as  solar  modules,  mod u le  mounting  structures,  invertors,  cabks, etc ..

In case, the project  developer  or  Channel  Partner/System  i ntegrator/SN A/Central Govt. organization has recei ved capital subsidy for setting  up  a  mini-grid  or  micro  grid solar plant, they will  furnish  copy  of  the  approval  or  letter  sanctioning  subsidy  for  that  plant,  i n  lieu  ol" the  aforesaid documents.

For  submitting  the   Application   for   BoM   online,  all  the Project  Developers/ Agencies  shall allow  "Guidelines  for  online  submission  of  Total   Bill  of  Material  & Application for  issue  of  CCDC/EDEC"  as  contai ned  i n  this  Ministry's OM No.30/20/201 1-12/NSM dated  01.07.201 3(Copy avai lable on  MNR E 's website). The  U RL address for on l i ne registrat ion is http:l/1 64.100.194.45/ccms for Password obtaining Login ID & Password.

(A.N.   Srivastava )

Director

Phone: 24363498

 [...] 

Copy to:-

1. [...] 

( A.N. Srivastava)

ANNEXURE-A

PROCEDURE FOR AVAILING DUTY BENEFITS FOR MINI-GRID OR MICRO GRID SOLR POWER PLANTS

(a)     The application for Total Bill of Material may be submitted online in the format at Annexure B1  to the concerned Channel Partner (CP/System Integrator (SI) or State Nodal Agency (SNA) / Central Govt. organizations, as the case may be, 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  CP/SI  or SNA/Central Govt. organizations, as the case may be, shall then forward the same to MNRE for approval.

(b)            At this stage, the developers would be required to submit all basic documents, as mentioned under para 3 of this Ministry’s OM No.30/42/2011-12/NSM, dated 10th Sept. 2013, to the concerned CP/SI or SNA/Central Govt. organizations, as the case may be, along with the Total Bill of Material duly certified by the Chartered Engineer;

(c)             In case, the project developer or Channel Partner/System integrator/SNA/Central Govt. organization has received capital subsidy for setting up a mini-grid or micro grid solar plant, they will furnish copy of the approval or letter sanctioning subsidy for that plant, in lieu of the aforesaid documents.

(d)            The concerned CP/SI or SNA/Central Govt. organizations, shall forward  the  above documents and application for Total Bill of Material to MNRE after verification.

1. 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 online 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.
2. Government of India’s notifications, as referred 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.
3. Upon achieving commercial operation, the project developer shall submit a reconciliatory statement for all equipment or items with respect to Total Bill of Material.

Annexure-B.1

भारत सरकार / Government of India

नवीनऔर  नवीकरणीय ऊर्ाा मत्र

ाऱय/ Ministry of New & Renewable Energy

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APPLICATION FORMAT FOR “TOTAL BILL OF MATERIAL”

(TO BE FILLED BY PROJECT PROMOTER/DEVELOPER AND FORWARDED, IN TRIPLICATE, THROUGH THE CONCERNED CHANNEL PARTNER (CP) / SYSTEM INTEGRATOR ((SI) OR STATE NODAL AGENCY (SNA) / CENTRAL GOVT. ORGANISATION)

Application format for submission of “Total Bill of Material” for grant of customs and excise  duty  benefits to Project Developers/Importers by MNRE for initial setting up of Solar Power generation project or facility. This application needs to be submitted online by Developers, with all necessary documents, to the concerned CP/SI or SNA/Central Govt. organization, as the case may be, who shall forward the application & other documents, to MNRE, upon verification of details under Part-A below.

Part-A: Project Details

Part B: Total Bill of Material of items/ machinery required for setting up of a Solar PV/Thermal Power Plant

Items mentioned here under should be within the machinery, including prime movers, instruments, apparatus and appliances, control gear and transmissions equipment and auxiliary equipment (including those required for testing and quality control), only required for initial setting up of a solar power generation project or facility as per Notification 01/2011- Customs dated 06/01/2011 and Notification 15/2010-Excise dated 27/02/2010 and MNRE’s OM No. 24/39/2011-12/PVSE dated 21 Dec 2011.

*Quantity should be mentioned in Nos./Units/Kgs/Kmtrs/MTs/and not in undefined terms such as Lots/Sets/ etc.

Signature and Seal of Authorised Signatory of Project Company/Organisation/Agency

Duly verified and certified by Chartered Engineer Name and address of Institution Chartered with:

Ref. No. & Date of membership:

Recommendation of the concerned Channel Partner / System Integrator or State Nodal Agency/Central Govt. Deptt./Organisation, as the case may be, with Name, Date, Place of full address of the authorized officer of the above concerned Agency,  with official seal.

Signature………….

Date…………

भारत सरकार / Government of India

Annexure-B.2

नवीनऔरनवीकरणीय ऊर्ाा मंत्राऱय/ Ministry of New & Renewable Energy

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EXCISE DUTY EXEMPTION CERTIFICATE

Part A. (TO BE FILLED BY PROJECT PROMOTER/DEVELOPER - IN DUPILICATE)

[Format for issue of certificate for grant of Excise duty exemption to manufacturers for machinery, including prime movers, instruments, apparatus and appliances, control gear and transmissions equipment and auxiliary equipment (including those required for testing and quality control) equipments and components required for initial setting up of a solar power generation project or facility as per Ministry of Finance, Department of Revenue Notification No. 15/2010–Central Excise dated 27th February, 2010 and amendment Notification No.26/2012-Central Excise, dated 8th May 2012.]

Ref. No. ------------------------                                                                          Date: ---------------

Project: ------------------------ (Solar PV/Thermal and Capacity)

Location: -----------------------(Flat/Building/House No./Institution/Village Panchayat/ name of Village, Taluka, District & State)

Date of submission of Total Bill of Material to MNRE: ------------------------

1.     Project Authority Certificate:

I, --------------------------, Chief Executive Officer of ------------------------------ (Name of the Project developer) am duly authorized to issue the Project Authority Certificate. I hereby certify that M/s -------------------------- (Name of the supplier/contractor) have been awarded a contract for supply of goods of quantity and description, as mentioned below, for onshore supplies against Purchase Order No. ---------------- Dated ------------ (Copy of Purchase Order and specifications of the equipment are enclosed).

Package Name/Description: -------------------------------------------

*Quantity should be mentioned in Nos./Units/Kgs/Kmtrs/MTs/and not in undefined terms such as Lots/Sets/ etc.

**Name & description of items should match the name and description mentioned in the P.O. and Total Bill of Material.

Certified that:

1. The above items of machinery and components being supplied/ procured would be utilized for initial setting up of a Mini grid/ Micro grid solar power generation project or facility  for  ----  kW  capacity  at  Flat/Building/House  No./  Institution/Village Panchayat

                                          at  village  -------   district--------  State      for  use  of  power by                             (villagers/house-owners or others).

1. The above goods are eligible for exemption from duties of excise leviable under the Ministry of Finance’s Notification no. 15/2010 dated 27/02/2010 and amendment Notification No.26/2012-Central Excise, dated 8th May 2012, and any subsequent amendments/clarifications issued thereafter.
2. The said goods shall be used in the said ------------------------ (Name of the Project) of           ----

-------------- (Name of the developer) only and not for any other use.

1. In the event of non-compliance of the above, I undertake to pay the duty which would have been leviable at the time of clearance of goods, but for this exemption.
2. Statement indicating utilization of above materials/components and parts procured from various manufacturers/ suppliers, will be submitted to MNRE in the prescribed format, within 60 days of commissioning of the project.
3. No other similar certificate to any other party has been issued for the same supplies as detailed above, under the same P.O. referred to above.

Signature Name:

Designation: Chief Executive Officer

Place:                                               Name of Project Company /Organisation/Agency: Date:                                                           Seal:

Part-B

1. Chartered Engineer’s Certificate:

I have examined the applicant company's requirements of new materials, components etc. with regard to their technical description/specification and the quantity against each item of manufacture and having regard to proper technical norms of consumption and after technical scrutiny of DPR and relevant designs and drawings, I hereby certify that they are correct in all respects and are actually required for the execution of the ----- kW mini grid/micro grid Solar power  generation project  at  Flat/Building/House  No/ Institution/Village Panchayat                                                                                                 at Village------ Taluka -------- District------State-----.

The above mentioned items and respective quantities are in compliance with Total Bill of Material  submitted to MNRE on                                                (date). (Please furnish a separate item-wise justification in case the quantity indicated is higher than the quantity mentioned in the Total Bill of Material  )

Signature:

Name in Block Letters: Designation:

Address:

Place:                                                                                Name of institution chartered with:

Date:                                                                                 Ref. no and date of membership:

File No.                                            

Part C

1. Certificate by an officer not below the rank of Deputy Secretary to Government of India in the Ministry of New & Renewable Energy (MNRE):

It is certified that the goods as mentioned in para ‘1’ above indicating the quantity, description and specifications thereof are required for use in the --------------------------- (Name of the Project)

of ------------------ (Name of the developer).

Signature:      

Name:                                            Designation:                                     

Place: New Delhi                                                          Ministry of New & Renewable Energy

Date:                                                                             Office Seal:

To

Asstt./Dy. Commission of central Excise

                                                                   (Excise Range/Division/Commissionerate)

Annexure-B.3

भारत सरकार / Government of India

नवीनऔरनवीकरणीय ऊर्ाा मंत्राऱय/ Ministry of New & Renewable Energy

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CONCESSIONAL CUSTOMS DUTY CERTIFICATE

Part –A (TO BE FILLED BY PROJECT PROMOTER/DEVELOPER IN DUPLICATE)

[Format for issue of certificate for grant of Concessional Customs duty to the importers for machinery, including prime movers, instruments, apparatus and appliances, control gear and transmissions equipment and auxiliary equipment (including those required for testing and quality control) equipments and components required for initial setting up of a solar power generation project or facility as per Ministry of Finance, Department of Revenue Notification No. 01/2011-Customs dated 06/01/2011; No.21/2012-Customs dated 17/03/2012 and amendment Notification No.32/2012-Customs, dated 8th May 2012]

Ref No. ------------------------                                                                           Date: ---------------

Project: ------------------------ (Solar PV/Thermal and Capacity)

Location: -----------------------(Flat/Building/House No./Institution/Village Panchayat/ name of Village, Taluka, District & State)

Date of submission of Total Bill of Material to MNRE: ------------------------

1.     Project Authority Certificate:

I, --------------------------, Chief Executive Officer of ------------------------------(Name of the Project / developer) am duly authorized to issue the Project Authority Certificate. I hereby certify that M/s -------------------------- (Name of the supplier/contractor/importer) have been awarded a contract for supply of goods of quantity and description as mentioned below for offshore supplies against Purchase Order No. ---------------- dated ------------ (Copy of Purchase Order and specifications of the equipment are enclosed).

Package Name/Description: --------------------- ----------------------

*Quantity should be mentioned in Nos./Units/Kgs/Kmtrs/MTs/and not in undefined terms such as Lots/Sets/ etc.

**Name & description of items should match the name and description mentioned in the P.O. and Total Bill of Material

Certified that:

1. The above items of machinery and components being imported would be utilized for initial setting up of a Mini grid/micro grid solar power generation project or facility for ---

-  kW  capacity  at  Flat/Building/House  No./Village Panchayat/Institution                    at village ------- district-------- State for use of power by villagers/house- owners/Institution/Village Panchayat or others.

1. The above goods are eligible for concessional duties of customs leviable under the Ministry of Finance’s Notification no. 01/2011 dated 06/01/2011 No.21/2012-Customs dated 17/03/2012 and amendment Notification No.32/2012-Customs, dated 8th May 2012and any subsequent amendments/clarifications thereafter.
2. The said imported goods shall be used in the said ------------------------ (Name of the Project) of ------------------ (Name of the developer) only and not for any other use.
3. In the event of non-compliance of the above, I undertake to pay the amount equal to the difference between the duty leviable on such goods but for the exemption under this notification and that already paid at the time of importation.
4. Statement indicating utilization of above materials/components and parts procured from various manufacturers/ suppliers, will be submitted to MNRE in the prescribed format, within 60 days of commissioning of the project.
5. No other similar certificate to any other party has been granted for the same supplies as detailed above, under the same contract referred to above.

Signature Name:

Designation: Chief Executive Officer

Place:                                                    Name of Project Company /Organisation/Agency: Date:                                                                                          Seal:

Part-B

2.Chartered Engineer’s Certificate:

I have examined the applicant company's requirements of new materials, components etc. with regard to their technical description/specification and the quantity against each item of import and having regard to proper technical norms of consumption and after technical scrutiny of DPR and relevant designs and drawings, I hereby certify that they are correct in all respects and are actually required for the execution of the ----- kW mini grid/micro grid Solar power generation   project    or   facility   at   Flat/Building/House   No./Institution/Village      Panchayat

                    at village------ taluka -------- district------State-----.

The above mentioned items and respective quantities are in compliance with Total Bill of Material submitted to MNRE on                                                (date). (Please furnish a separate item wise justification in case the quantity indicated is higher than the quantity mentioned in the Total  Bill of Material)

Signature:

Name in Block Letters: Designation:

Address:

Place:                                                                                Name of institution chartered with:

Date:                                                                                 Ref. no and date of membership: