Govt bans zero duty import of capital goods for power plants

The government banned duty- free import of capital goods for power generation and transmission projects under the EPCG Scheme.

Aim: To encouraging manufacturing of power equipment and giving a push to domestic capital goods sector.

• Amending the Foreign Trade Policy 2015-20 authorisation under EPCG Scheme shall not be issued for import of any Capital Goods for generation/transmission of power
• The government has fixed a target of 88,537 MW power generation capacity addition for the 12th Plan period ending 2016-17.

About EPCG Scheme :

Export Promotion Capital Goods (EPCG) scheme allows import of capital goods including spares for pre production, production and post production at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported