Govt allows import of cranes for wind farm
Over the next 15 years, the Gemini windpark, which lies some 85 kilo metres off the northern coast of The Netherlands, will meet the energy needs of about 1.5 million people. PHOTO: AFP
The government, almost after one year, has finally given one-time import permission to Tricom Wind Power (Private) Limited, which is engaged in setting up a 50-megawatt wind farm in Sindh.
In this regard, the government has relaxed the Import Policy Order (IPO) 2020 for temporary importing truck-mounted cranes for the wind power generation project.
In May last year, the commerce ministry tabled a case before the cabinet. However, the cabinet did not take any decision and called for submitting the summary again.
Now, in a recent meeting, the cabinet allowed the import of truck-mounted cranes for wind farms.
The Commerce Division recalled that the federal cabinet considered the summary titled “One-Time Permission for Post-Shipment Inspection of two Units of Truck-Mounted Cranes for Wind Power Generation Project in Relaxation of the IPO, 2020” on May 9, 2021.
The cabinet gave directives for further examining the request of Tricom Wind Power in accordance with the relevant provisions of IPO 2020 and resubmitting it for the cabinet’s consideration in the next meeting.
The request was re-examined in accordance with the relevant provisions of IPO 2020 and it was noted that the company had imported truck-mounted cranes on a temporary basis.
Hence Para 13 of the IPO 2020, which governed temporary import of specified goods, was applicable in the case and not the condition of obtaining pre-shipment inspection certificate from the specified companies listed in IPO 2020.
The said para allowed certain sector-specific companies like construction, oil and gas exploration and production companies, mining firms and refineries to temporarily import specified goods including the truck-mounted cranes against the submission of indemnity bond or bank guarantee to the satisfaction of customs authorities to ensure re-export of the same within the specified period.
However, it did not allow temporary import of machinery, vehicle-mounted machinery and equipment by power sector companies. Moreover, there were no duties and taxes on the temporary import of goods.
As Tricom temporarily imported two units of old/ used double-cabin truck-mounted cranes for the power generation project, its import was not covered in the categories mentioned in para-13 of the IPO 2020.
Tricom is a private limited company established in 2015 and registered under the Companies Act 2017. The company was in the process of developing a 50MW wind farm at a site located in Jhimpir, Thatta district, Sindh on a build, own and operate basis.
The company had been granted generation licence by the National Electric Power Regulatory Authority (Nepra) and was registered as an electric power generation company with the Federal Board of Revenue (FBR).
Keeping in view the delay in completion of the 50MW wind power project, the company requested for a one-time special permission to temporarily import used double-cabin truck-mounted cranes.
The matter was taken up with the FBR, which also requested to consider the request of one-time permission for the temporary import of two cranes for the power project.
Para 20 and 21 of the IPO 2020 empowered the federal government to condone such contravention thereof and to allow import in relaxation of any prohibition or restriction.
Keeping this in view, approval of the federal cabinet was solicited to grant one-time permission for temporary import of two truck-mounted cranes for the wind power generation project of Tricom against the submission of indemnity bond or bank guarantee to the satisfaction of customs authorities to ensure re-export and pay surcharge equivalent to 15% of CIF (cost, insurance and freight) value of the cranes.
The cabinet considered the summary titled “One-Time Permission for Temporary Import of two Units of Truck-Mounted Cranes for Wind Power Generation Project in Relaxation of the IPO, 2020” dated February 7, 2022, submitted by the Commerce Division, and approved the proposal.
Published in The Express Tribune, February 24th, 2022.
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