Capital Goods Import Power Transmission and Distribution Disallowed under EPCG

·      “Supply” Word in Appendix 5F at Sl No. 12 Clarified

·      Generation of Power Word Creeps into Clarification, Capital Goods for Generation of Power also Banned under EPCG now!

[DGFT Policy Circular No. 15 dated 4th January 2019]

Subject: Clarification in respect of "not permitting" the import of the capital goods required for "distribution of electrical energy (power)" under the EPCG Scheme.

The representations have been received from the trade and industry that since in both the Notification No. 35/2015-2020 dated 29.01.2016 and the Serial No.12 in the Appendix SF of the Public Notice No. 47/2015-20 dated 06.12.2017, the word 'distribution" is missing, the intention of the Government was not to disallow the issuance of the EPCG authorisations for the import of the capital goods required for "distribution" of electrical energy (power) and thus a clarification may be issued allowing EPCG Authorisations for the import of the same. The matter has been examined and it is clarified that the transmission of electricity and the distribution of electricity is nothing but the same process of "supplying of the electricity" from one point to the other.

2.   Therefore, Sr. No. 12 in the Appendix 5F of the FTP 2015-20 did not permit the import of any kind of capital goods for generation, transmission and distribution of power.

This Policy Circular is issued with the approval of the DGFT.