KARACHI: The Federal Board of Revenue (FBR) has allowed M/s Karot Power Company to import duty/taxes free machinery and equipment for establishing 720 MW Karot Hydropower Project by issuing CGO 5/2015, it is learnt.
In this regard, the FBR has forwarded a letter to the collectors of the Model Customs Collectorate of Appraisement East and West, informing them about the permission for the import of machinery and equipment.
“I am directed to enclose a copy of the Ministry of Water and Power in respect of M/s Karot Power Company (Private) Limited for necessary action under the law. The admissibility of the concession and fulfillment of other requirements shall be determined and ensure by the collectorate as per rules, policy and procedure,” the letter available with Customs Today said.
“The collectorate is also requested to strictly ensure/verify that the equipment, machinery and other capital goods imported by them are new and purely for the purpose of construction of the power plant and take further necessary action as per rules, policy and procedures,” it added.
According to sources, M/s Karot Power Company has requested the Ministry of Water and Power for issuance of a certificate for availing the concessions/exemptions on import of machinery, equipment and other capital goods during the construction phase of its 720 MW Hydropower Project.
It is certified that M/s Karot Power Company (Pvt) Ltd is in process of development of 720 MW Hydropower Project in IPP mode on Jhelum River near Karot Bridge at boundary between Punjab and AJ&K under the policy for power generation projects 2002, sources added.
The said project has completed almost all major activities to achieve financial closing and started preliminary construction work at site. The project will supply electricity to national grid as per Power Purchase Agreement (PPA) executed between M/s KPCL and CPPA-G. The date for financial closing as per LOS is 28th December, 2016 and Commercial Operation Date for the project will be 28th December, 2021, they said.
