The Indian government has granted customs duty exemption on electricity imported from Bhutan and Nepal, Indian media reported.
However, power generated from a plant located in Special Economic Zone (SEZ) would attract a levy of up to IRs 0.89 per unit.
“Electrical energy originating from Nepal and Bhutan” will attract standard customs rate of ‘nil’, India’s Central Board of Excise and Customs said in a notification.
India presently imports 1.5 Gigawatt (GW) of hydropower from Bhutan. This is projected to rise to 8GW by 2022 and India hopes to start power from Nepal by that time.