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of <h1>Customs duty capped at 5% for machinery imported for renewable power and CBG projects, subject to certification and PPA</h1> All items of machinery, components and auxiliary equipment imported for initial setting up of projects to generate power or compressed bio-gas from non-conventional materials are exempt from customs duty in excess of 5% ad valorem, subject to conditions: a government ministry certificate confirming project use; a valid power purchase agreement for at least ten years (with specified exceptions for state utilities and municipal-waste projects where a processing agreement with the local body suffices); and an undertaking to use the goods or repay the duty differential. The notification's effect was limited in time and later superseded effective 1 November 2025.
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