DGFT Clarifies EPCG Restriction on Power Plants for Captive Consumption

[DGFT Notification No. 35 dated 29th January 2016]

Effect of this Notification: Import of Capital Goods is not permitted under EPCG Scheme for generation/transmission of power. It further clarifies the provision.

Subject: Amendment in Para 5.01(g) of FTP 2015-2020

In exercise of the powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, as amended, read with Para 1.02 of the Foreign Trade Policy, 2015-2020, the Central Government hereby makes the following amendments in the Foreign Trade Policy (FTP) 2015-2020 with immediate effect:

Amendment in Para 5.01 (g) of FTP 2015-2020

(a).  Amended Para 5.01 (g) of FTP 2015-2020 shall read as under:

“(g) Authorization under EPCG Scheme shall not be issued for import of any Capital Goods for generation/transmission of power (including Captive plants and Power Generator Sets of any kind) for:”

(b).  Amended Para 5.01 (g) (iii) of FTP 2015-2020 shall read as under:

“(iii) Supply of power (energy) in their own unit, and”

Full text of after Amendment (in bold) read as under:

(g)   Authorisation under EPCG Scheme shall not be issued for import of any Capital Goods for generation/transmission of power (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)  Supply of power (energy) in their own unit, and

(iv)  Supply/export of electricity transmission services