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Deemed export benefits for Talcher Super Thermal Power Project Stage II
Public Notice No. 18 dated 1st July 1999 (As amended by , Public Notice No. 38 dated 5th November 1999)
As per Paragraph 10.2(d) of the EXIM Policy, 1997-2002 read with Appendix 40 of Handbook of Procedures (Vol. I), 1997-2002, supply of goods to projects financed by World Bank are entitled for deemed export benefits as given under Paragraph 10.3 of EXIM Policy.
Talcher Super Thermal Power Project Stage II (4x500 MW), Talcher � II Transmission Projects, Sasaram HVDC East � North Interconnector Project and Rihand � Sasaram � Biharsharif HVDC Link Back to Back Station project are likely to be financed by World Bank. This matter of extending deemed export benefits for supply of goods to the above stated projects has been considered in consultation with Ministry of Finance and it has been decided that deemed export benefits as given under Paragraph 10.3 of the EXIM Policy shall be available for supplies of goods to the above stated projects, as if these projects are financed by World Bank.
In case the bids are invited under the World Bank Procedures and the World Bank loan fails to come through, for any reason, the deemed export benefits would be available as if the supplies have been effected under Paragraph 10.2(d) of the EXIM Policy. However, in these cases the Power Grid Corporation would return the cash equivalent of the deemed export benefits availed by the suppliers for the above stated projects except for Talcher Super Thermal Power Project Stage � II (4x500 MW). In case of Talcher Super Thermal Power Project Stage � II (4 x 500 MW), in the eventuality of World Bank funding not being available, since the suppliers would in any case be eligible for deemed export benefits as given in Paragraph 10.3 (c) and (d), under provisions of Paragraph 10.2 (g) of the EXIM Policy, subject however, to compliance of conditions laid down in Paragraph 10.11 of Handbook of Procedures, NTPC would have to
return the cash equivalent of the additional deemed exports benefits availed by the suppliers for this project, as given in Paragraph 10.3(a) and (b) of EXIM Policy, 1997-2002.
This issues in the Public interest.
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