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<h1>New Guidelines for Power Generation in SEZs: Fiscal Benefits for Setup, Limited O&M Benefits, Effective February 2016.</h1> The guidelines for power generation, transmission, and distribution in Special Economic Zones (SEZs) have been updated, effective February 16, 2016. Developers can establish power plants in the Non-Processing Area with initial fiscal benefits but no ongoing operation and maintenance (O&M) benefits. Captive power plants in the Processing Area are subject to Net Foreign Exchange obligations and can receive fiscal benefits for setup and maintenance. IT/ITES SEZs and certain sectors may generate power with fiscal benefits. SEZs connected to the grid can create backup power facilities with varying duty benefits. Pre-2009 approved power plants have specific O&M benefit conditions.