For computing profits of a captive power undertaking under...

For computing profits of a captive power undertaking under section 80IA(4), the market value of electricity used internally is described as the tariff at which the Electricity Board supplies electricity to industrial consumers. The rate paid by the Electricity Board for surplus electricity generated is not treated as the relevant market value because it is set through statutory regulation and contractual arrangements rather than the rate payable by an industrial consumer. The note states that this approach supports computation of the eligible deduction for captive power generation.