Presentation on Concessional Custom Duty Excise Duty Exemption

Presentation on Concessional Custom Duty & Excise Duty Exemption Certificate Presented by Asmita Pathak - (Chartered Engineer ) Reg No. - AM- 1701838 Accredited by Ministry of New and renewable energy Head –Business Development at Darsh Renewables Pvt Ltd M- +91 -7827203144 , 8512022929 T: 0124 -4262916 FF-26 Omaxe Celebration Mall Subhash Chowk Sohna Road Gurgaon – 122001

Introduction I wish to Introduce myself as an Empanelled Chartered Engineer by Ministry of New and Renewable Energy to certify Total Bill of material Required for initial setting up of Solar Power Projects and to verify the reconciliation certificate for Commissioned Projects. Wherein I have been Solar Consultants to leading Builders like Unitech, Chintels, KLJ Group etc. As an EPC company/Consultancy in Solar Industry one of the major requirements to manage projects cost is by getting Excise and Customs Duty Exemptions. As per recent developments Ministry Of New and Renewable Energy has introduced New simplified and improved procedure for online submission of Total Bill of Materials (BOM) and application for issue of Concessional Customs Duty Certificate (CCDC) and Excise Duty Exemption Certificate (EDEC) for availing Duty Concession/Exemption on the procurement of Items , materials , components required for initial setting up of solar power plants in India. These Exemptions can be availed for a minimum capacity of 100 KW as a single project or Bundled Project. In case of Bundled projects as special case , Erection Procurement Commission (EPC)/RESCO contractors shall apply on the behalf of end users/beneficiary in separate category "Bundling" project in the MNRE website (http: //164. 100. 195. 45/ccms) in form of Bill of Materials for approving and issue of Custom and Excise Duty Exemption Certificate (CCDC/EDEC) and withdraw materials for installation of Solar

Items Required for Initial Setting up of Solar PV Power Project Sr. No. Block 1 Solar Block 2 Power Block 3 Power Evacuation Block 4 Measuring Instruments Description of Items Solar Module, String Monitoring Box, DC Cables, MC 4 Connectors, Branch Connectors, Module Mounting Structure, Conduit/Hume Pipes, Solar module tracker bearing Mechanism Inverter, Transformer, HT Cable, LT Cable, Isolators, Ring Main Unit, AC/DC Distribution Board, VCB/SF 6 Circuit Breaker/MCB, HT Panel, Battery and Battery Charger, DO Fuse, Discharge Rod ACSR Conductor, Vibration Damper, Repair sleeve, Disc/Pin Insulator, Switchgear, Control and Relay Panel, 2/4 -Pole structure, Surge Arrester SCADA System, ABT Meter, Metering CT/PT, Weather Monitoring Device, RS 485 Communication Cable, Fibre Optic Cable, Pyranometer, Anemometer, Module Temperature Sensor, Ambient Temperature Sensor

As per MNRE OM No. 22/09/2009 -10/St. /NSM dated 08 th January, 2014 “Ineligible Items” to be excluded from the Total Bill of Material are as under: Category I: Category II: Category III: Category IV: Category V: Civil Work items like Cement, TMT (Saria), Pre-Fabricated/Pre Engineered Building, Inverter Exhaust Ducting and Machinery required for Civil Work such as Ramming Machine, Fork Lift etc. Earthing Material like GI Earthing Strip, Earthing Electrode, Earthing Pit for Array Yard, Earthing Hook etc. Plant Lighting Material like CFL, Tube-lights etc. , Cable for lighting, Switch Board for lighting, Plant Lighting Transformer, LT AC Lighting Distribution Board, Lighting Pole, Lighting Fitting, Lighting Junction Board, Pathway Street Light Poles, Fixtures, Boundary Street Light Fixtures. Lightning Arrestors Items for Plant Security like Boundary Wall/Fencing, Watch towers, Main Gate, C. C. T. V. Camera etc. Category VI: Miscellaneous items like ISI marked Rubber Gloves, Sand Filled Bucket, Fire Fighting Equipments etc. Note: - This is an illustrative list and not exhaustive. Any item / part / component found ineligible on a future date can also be included in this list

Difficulties of Manual System Ø The entire verification of applied and issued quantity was done manually which left ample scope for committing mistake and resulted into delay in issuing certificates. Ø On an average the entire process for approval of Bo. M and subsequent issue of certificate used to take around 2 months. Ø This also necessitated huge manpower engagement and consumption of large quantity of stationery.

Development of online system To overcome these difficulties the MNRE has developed an online system with following inherent advantages: Ø Transparent processing Ø Minimization of processing time Ø Quick tracking of the status of applications Ø Citizen centric enabling the applicants to directly view the status of their applications online

Online system – processing steps Ø Online registration by each solar power developer on 164. 100. 194. 45/ccms website.

Ø Upon registration, Login ID and User Password to be system-generated and communicated to the SPD to his registered e-mail automatically. Ø Also the activation link has been sent to registered email id.

Ø The SPD to submit Bill of Material online alongwith other necessary documents. Take a print of Bo. M and submission of the same to the Chartered Engineer for certification.

Ø Upon certification by the Chartered Engineer only the Bo. M to be forwarded to MNRE for approval.

Ø Upon certification of CE it is necessary to upload signed Bo. M alongwith other documents online. Ø The Bo. M is approved online and frozen which can be changed by the designated Committee of MNRE only upon specific request and clear justification by the SPD. Ø Authorize SPD to generate certificate online and upload the PO copies for online approval of MNRE. Ø MNRE to issue the certificate upon endorsing a unique verification code online itself.

Result Achieved/ Value Delivered to the Beneficiary of the Project Ø The delivery of service i. e. issue of CCDC / EDEC has reduced to 1 -2 days. Ø The possibility of any error relating to quantity and item is totally eliminated as the system would not allow any such deviation. Ø Every Bo. M and the subsequent certificates bear a unique no. which is exhibited explicitly which the custom authorities can also verify online. Ø The SPDs can track the progress of approval of Bo. M and the certificates online. Ø Discrepancy, if any, is communicated to the SPD through a system generated e-mail. Ø Internal noting's for approval of Bo. M / CCDC / EDEC on file is generated online. Ø Applications for certificates can be processed in a very short duration of 1 -2 days. Hence more applications can be processed with the implementation of new system of egovernance. Ø Reduction in engagement of manpower. Ø Satisfaction level of the SPDs has improved considerably.