5.8
Technological Upgradation of existing EPCG machinery
EPCG Authorization holders can opt for ‘Technological Upgradation’ of existing capital goods imported under EPCG Authorization(s). Conditions governing are as under:
(a) Minimum time period for applying for ‘Technological Upgradation’ is 4 years from earlier EPCG Authorization issue-date.
(b) Minimum exports made must be 50% of total export obligation imposed on earlier EPCG Authorization(s).
(c) EO would be re-fixed such that
(i) total EO shall be sum total of 6 times of duty saved of earlier EPCG and the new one, and
(ii) EOP is 6 years from EPCG authorization issue-date under this Para.
(d) Facility for technological up-gradation 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.
(e) Capital Goods to be imported must be new and technologically superior to earlier CG (to be certified by Chartered Engineer).
(This version of Chapter 5 of the Foreign Trade Policy deals with policy provisions for Export Promotion Capital Goods (EPCG) Scheme replace by NOTIFICATION NO. 01/2013, DT. 18/04/2013 with immediate effect.)
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5.8
Technological Upgradation of existing EPCG machinery
EPCG Authorization holders can opt for ‘Technological Upgradation’ of existing capital good imported under EPCG Authorization(s). Conditions governing are as under:
(a) Minimum time period for applying for ‘Technological Upgradation’ is 5 years from earlier EPCG Authorization issue-date.
(b) Minimum exports made must be 40% of total export obligation imposed on earlier EPCG Authorization(s).
(c) EO would be re-fixed such that
(i) total EO shall be sum total of 6 times of duty saved of earlier EPCG and the new one, and
(ii) EOP is 8 years from EPCG authorization issue-date under this Para.
(d) Facility for technological up-gradation 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.
(e) Capital Goods to be imported must be new and technologically superior to earlier CG (to be certified by Chartered Engineer). ]