The government has approved a Rs 14,000-crore special economic zone (SEZ) project of Adani Power in Jharkhand, which will export entire power generated to Bangladesh, an official said.

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The project was approved by highest decision making body on SEZ - Board of Approval - chaired by the commerce secretary, in its meeting on February 25, the government official said.

Adani Power (Jharkhand) Ltd has sought approval for setting up of sector specific SEZ for power at villages - Motia, Mali, Gaighat and adjacent villages in Godda district, Jharkhand over an area of 425 hectare.

It has received formal approval for the land in possession of 222.68 hectare area and in principle approval for remaining 202.32 hectare.

Two supercritical units of 800 MW each would be set up with an investment of Rs 14,000 crore which would include setting up of a water pipeline and power evacuation system.

It will be ready by the end of 2022. The company has already signed power purchase agreement for supply of 100 per cent power generated from this plant to Bangladesh.

The SEZs are major export hubs in the country as the government provides several incentives including tax benefits and single window clearance system.

The developers and units of these zones enjoy certain fiscal and non-fiscal incentives such as no licence requirement for import, full freedom for subcontracting, and no routine examination by customs authorities of export/import cargo. They also enjoy direct and indirect tax benefits.

Exports from special economic zones grew by about 15 per cent to Rs 5.52 lakh crore in 2017-18.