DGFT to Reconsider Ban on Captive Power Plants under EPCG – Invites Views from Trade

[DGFT Trade Notice No. 08 dated 17^th December 2013]

Subject: Inviting Suggestions on import of power generating equipment under EPCG scheme

Notification No. 7 dated 18.4.2013 disallows import of captive power plants and power generator sets under Export Promotion Capital Goods (EPCG) scheme with effect from 18^th April 2013.

2. Representations have been received from trade and industry that uninterrupted supply of quality power at competitive rates is essential for production activities and maintaining export competitiveness. Import of capital goods under EPCG scheme at concessional duty reduces the overall cost of setting up of a power plant which in turn reduces the cost of power and ensures uninterrupted power supply. Their representation, accordingly, pleads for import of power generating equipment under the EPCG scheme.

3. Views/suggestions/comments on the request contained in para 2 above are solicited. While submitting such feed-back, care may be taken also to suggest how to count fulfillment of Export Obligation because the resultant product of such capital good, i.e. ‘power’ is mostly not exportable per-se. Similarly, how a common service provider installing power equipments would fulfill Export Obligation may also be conveyed. One suggestion is to take into account the imputed value of power in the export products of the respective EPCG authorisation holders while calculating the EO.

4. All stakeholders are requested to give their feed-back /suggestion preferably through e-mail addressed to the undersigned as soon as possible but not later than by Monday, the 6^th January, 2014.