Indian government on 1 Feb’16 has banned duty-free import of capital goods for power generation and transmission projects under the Export Promotion Capital Goods (EPCG) Scheme. The government is aiming to encourage manufacturing of power equipment as well as domestic capital goods sector, with an aim to boost the overall economy.
Amending the Foreign Trade Policy 2015-20, the Directorate General of Foreign Trade (DGFT) said in an order, “Authorisation under EPCG Scheme shall not be issued for import of capital goods for generation/transmission of power (including captive plants and power generator sets of any kind).”
The EPCG scheme allows import of capital goods for pre-production, production and post-production at zero custom duty.
The government has fixed a target of 88,537 MW power generation capacity addition for the 12th Plan period ending FY17.
Till Dec’15, 72,240.12 MW (81.59%) of the target has achieved, as per data maintained by the Central Electricity Authority.
– Sourced
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