Import of Capital Goods under EPCG Scheme for set-up of new Power plant

[vinay wakde]

I would like to ask following clarification :-

(1) Whether EPCG benefit is available for power Project.

(2) What will be the status if the Power producer uses for captive consumption?

(3) What is the status of EPCG benefit if he sells the power

(4) Is it obligatory on the part of the importer to reverse the duty if the power plant is availing benefit under EPCG in the event of non fulfillment of Captive power consumption. If the answer is yes, what is the amount to be reversed.

(5) Is he liable to pay interest and penalty for non fulfillment of EPCG requirement.

Regards,

VINAY

[r.rajkumar kumar]

to my undaerstand epgc scheme agains export oblication.for power project may be some other scheme and exemption in indoa.

AI Summary

EPCG scheme: applicability hinges on export obligation; captive consumption or sale alters entitlement and reversal obligations. Entitlement to the EPCG scheme for capital goods imported for a power plant is contingent on meeting the scheme's export obligation; applicability to captive consumption or sale of power depends on that requirement. The response indicates EPCG is linked to export obligations and that power projects may instead fall under other schemes or exemptions, with potential duty reversal, interest, and penalty consequences if EPCG conditions are not fulfilled.