Technological Upgradation of existing EPCG machinery

5.10

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

The conditions governing the Technological Upgradation of the existing capital goods are as under:

(i) The minimum time period for applying for Technological Upgradation of the existing capital goods imported under EPCG is 5 years from the date of issuance of the licence.

(ii) The minimum exports made under the old capital goods must be 40% of the total export obligation imposed on the first EPCG licence.

(iii) The export obligation would be refixed such that the total export obligation mandated for both the capital goods would be the sum total of 6 times the duty saved on both the capital goods.

(iv) The procedure governing the replacement of capital goods is given in para 5.20 of the Handbook (Vol1).

(v) The 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 the applicant firm.