Govt bans duty-free capital goods imports for power projects

Euro – III compliant motorcycles will be allowed to be imported till March 3, 2017 The Dollar Business Bureau

Government has been taking several initiatives under its ‘Make in India’ programme to enhance the competitiveness of the domestic capital goods market

In a move to encourage domestic manufacturing, the government has decided to restrict the duty-free imports of capital goods for generation/transmission of power under the EPCG (Export Promotion Capital Goods) scheme. “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),” the Directorate General of Foreign Trade (DGFT) said in a notification. The government has been taking several initiatives under its ‘Make in India’ programme to enhance the competitiveness of the domestic capital goods market. Earlier this week, the Ministry of Heavy Industries & Public Enterprises had approved five projects, in which the government had agreed to invest Rs.175 crore under the initiative titled ‟Enhancement of Global Competitiveness of Indian Capital Goods Sector” launched in November 2014. The approved projects include setting up of an integrated machine tools park in Karnataka, a welding technology centre of excellence in PSG College of Technology in Coimbator, a machine tool factory to manufacture a range of machines of railways, defence, shipping, aviation and aerospace and a facility to manufacture heavy engineering equipment in Ranchi.[ In yet another decision on imports of motorcycles, the DGFT announced that Import of Euro – III compliant motorcycles will be allowed to be imported till March 31 next year. From April 2017, imports of only Euro – IV compliant motorcycles would be allowed in the country. However, imports of new motorcycles with engine capacity of 800 cc or more, by all categories of importers, including individuals, companies or OEMs (Original Equipment Manufacturers) will be exempted from the conditions./sociallocker]

February 03, 2016 | 05:10pm IST

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The Dollar Business Bureau - Feb 03, 2016 11:31 IST

Govt bans duty-free capital goods imports for power projects

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