Guidelines for exice duty exemption from MNRE
The undersigned is directed to say that the Solar Power Developers setting up Off-Grid Solar PV projects have been approaching this Ministry for grant of duty benefits under the notifications issued by Ministry of Finance (Deptt. of Revenue). They have been emphasizing the 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 duty benefits to the Roof-topSolar PV Power Plants (not connected to grid) has been under consideration in this Ministry for some time past. After examination of various issues involved, it has been decided to give Excise Duty Exemption Certificates(EDECs), with immediate effect, to all Roof-topSolar PV Power Projects upto a minimum capacity of 100 KW as a single project or a bundled project. Sufficient manufacturing capacity has been created in domestic market to meet the market of off-grid projects. Therefore, to encourage the domestic manufacturing, only Excise Duty Exemption Certificates(EDECs) will be issued by the designated officer of this Ministry forRoof-top off-Grid Solar PVPower Projec
- The procedure which is indicated in this Ministry‟s previous OMs of even number dated 17 January 2013, 1st July 2013 & 10th 2013 shall also be applied, mutatis mutandis, for issue of certificates for Excise Duty Exemption (EDE) to all Roof-topSolar PVPower Projects. Copies of the aforesaid OMs are available on the Ministry‟s website www.mnre.gov.in. However, since some of the new formalities are to be completed specially for issue of the certificates to Roof-topoff-grid projects, a separateand simple procedure and the application/BoM formats have been prepared and enclosed for issue of Excise Duty Exemption Certificate (EDEC). All the developers who want to set up Roof-topSolar PVPower Plants and desire to avail the duty benefits for those plantsshall, henceforth, submit the applications/BoM online in the enclosed formats, to this Ministry, through concerned State Nodal Agency after duly signed by the Chief Executive Officer of the Solar PV Project and duly certified by the empanelled Chartered Engineer, along with the following documents:-
- Details of Roof Area, with proof of possession of Roof/location/site for setting up Roof- topSolar PV PowerPlan It includes lease agreement, copy of building ownership, etc.
- Chartered Accountant‟s Certificate on the estimated project cost, with detailed break-up;
- (a) Application/BoM duly signed by the Chief Executive Officer of the project;
- Application/BoM duly certified by the empanelled Chartered Engineer with its Stampshowing name, address, member , date and institution chartered with;
- Application/BoM duly recommended & signed by the SNA, with office Seal;
- Detailed Project Report (DPR);
- Copy of EPC Contract or Agreement, if applicabl
- Single Line Diagram (SLD)/ Detailed Drawings with justification of requirement of cable; Module mounting structures, Inverter, et
- One Affidavit in the prescribed format, with self-certification only and not on Stamp Paper.
Format is available on MNRE website.
- The Bill of Material (BOM) shall be submitted to MNRE online. Once the BOM has been approved by MNRE and uploaded on the MNRE‟s portal http://164.10194.45/ccms, the developer should generate excise duty exemption certificate online and submit the hard copythereof in duplicate, after duly signed in ink, and also certified by the empanelledChartered Engineer, direct to the MNRE along with the copy of purchase order of the item for which exemption certificate is sought.
- In case, the project developer or organization has received capital subsidy for setting up a Roof-topSolar PV Power Plant, they will furnish copy of the approval letter sanctioning subsidy for that plant.
- For submitting the Application for BoM online, all the Project Developers/ Agencies shall follow “Guidelines for online submission of Total Bill of Material & Application” available on MNRE‟s website. The URL address for online registration is http://16100.194.45/ccms for obtaining Login ID & Password.