No Deemed Export Benefit to Non Mega Power Project

[DGFT Notification No. 107 dated 21^st March 2012]

Subject: Addition of new paragraph 8.7 in FTP making supplies to non mega power project ineligible for Deemed Export benefits.

In exercise of the powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992, as amended, read with paragraph 1.3 of the Foreign Trade Policy, 2009-2014, the Central Government hereby makes the following amendment in Foreign Trade Policy, 2009-2014 (RE 2010).

2. Following new paragraph will be added in FTP at the end of chapter 8 to appear just after para 8.6.2

“Ineligible category

8.7

Notwithstanding anything contained either in FTP or in HBP vol. 1; supplies to non mega power projects shall not be entitled to any deemed export benefit.”

4. Effect of this amendment:

As per Notification No.92 (RE-2010)/2009-2014 dated 28.12.2011, supplies to non mega power projects were entitled to benefits for Deemed Exports only under Para 8.3(a) of FTP, viz., Advance Authorisation / Advance Authorisation for annual requirement / DFIA. It has now been decided that supply to non mega power projects shall not be entitled to any deemed export benefit. When the annual supplement to FTP is brought out, the consequential changes of this decision will be reflected in various provisions of chapter 8 of FTP & also HBP vol. 1.