The study and analysis of policy and regulatory framework applicable to SEZ as a deemed distribution licensee
Student name: Ms Utkantha Srivastava
Guide: Mr M V Shiju
Year of completion: 2012
Host Organisation: ICRA Management Consulting Services Limited, Mumbai
Supervisor (Host Organisation): Mr Amit Mittal
Abstract: SEZ is a demarcated geographically area of the country, where country’s economic laws and orders
are not applicable and primary activity is to achieve both economic growth and development through
foreign direct investments and domestic investments.
There are various tax holidays and exemptions applicable to the units and the developer/ co developer
of SEZ, thereby, making it a lucrative area of investment for diversified fields of investors ranging
from IT sector, gems and jewelery, electronics, hardware etc.
The Government of India notification dated March 3, 2010 notified the Developers of SEZ as a
Deemed Distribution Licensee. Therefore, the application for grant of licence under Section 14 of
Electricity Act, 2003 for distribution of electricity is not required by SEZ developer.
The review of various power sector policies and orders and SEZ Act and rules have been studied to
design the draft report.
There have been no specific guidelines for such a group of distribution licensees and therefore, this
project activity is directed towards framing of the Specific Guidelines of Licence for Deemed
Distribution Licensee. The study conducted above has helped in creating draft which has been
submitted to the concerned State Electricity Regulatory Commission (SERC).
The notification has also paved a path for one of the solutions to meet the current demand supply gap
in the power sector.
Keywords: SEZ, Power, Deemed Distribution Licensee, Distribution Licence, Open Access
