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<h1>Power Generation in SEZs: Setup & Operational Benefits, Duty-Free Imports, and Regulatory Pricing under SEZ Act Section 26.</h1> The guidelines for power generation, transmission, and distribution in Special Economic Zones (SEZs) outline the setup and operational benefits for power plants within SEZs. Developers or co-developers can establish power plants in the non-processing areas, receiving fiscal benefits only during initial setup. Units within SEZs can generate power in the processing area, enjoying benefits under Section 26 of the SEZ Act, including duty-free imports. Standalone power plants in SEZs are treated as units in the processing area with similar benefits. Power distribution requires a license under the Electricity Act, 2003, and tariffs are determined by the Act's provisions. Separate entities may be created for generation, transmission, and distribution, and power supply between processing and non-processing areas is subject to regulatory pricing and duties.