No Capital Goods Import under Zero Duty EPCG for Power Sector

[DGFT Notification No. 07 dated 18^th April 2013]

In exercise of powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992) read with paragraph 1.2 of the Foreign Trade Policy 2009-2014, the Central Government hereby amends, with immediate effect, Para 5.1 of the Foreign Trade Policy (RE-2013)/2009-14.

A new sub-para (g) is being inserted after para 5.1(f) of FTP as under:

“5.1(g) Authorization under EPCG Scheme shall not be issued for import of any Capital Goods (including Captive plants and Power Generator Sets of any kind) for

i. Export of electrical energy (power)

ii. Supply of electrical energy (power) under deemed exports

iii. Use of power (energy) in their own unit, and

iv. Supply/export of electricity transmission services.”

Effect of Notification

Import of Capital Goods for production/transmission of energy(power) will no longer be available.