Technological Upgradation of existing EPCG machinery

5.10

EPCG Authorisation holders can opt for Technological Upgradation of existing capital good imported under EPCG Authorisation.

Conditions governing Technological Upgradation of existing capital goods are as under:

(i) Minimum time period for applying for Technological Upgradation of existing capital goods imported under EPCG is 5 years from Authorisation issue-date.

(ii) Minimum exports made under old capital goods must be 40% of total export obligation imposed on first EPCG Authorisation.

(iii) Export obligation would be refixed such that total export obligation mandated for both capital goods would be sum total of 6 times of duty saved on both the capital goods, to be fulfilled in 8 years from new authorisation issue-date.

(iv) Deleted.

(v) Facility for technological upgradation shall be available only once and the minimum imports to be made shall be at least 10% of the existing investment in plant and machinery by applicant.

(vi) Capital Goods to be imported must be new and technologically superior to earlier CG.