Technological Upgradation of Capital Goods

5.20

The EPCG licence holders can opt for the Technological Up gradation of the capital goods imported under the EPCG Scheme as per the provisions of Para 5.10 of the Policy.

In case an EPCG licence holder wants to upgrade the existing capital goods imported under the EPCG scheme ,he can opt for the Technological Up gradation subject to the following conditions:

(i) The capital goods to be imported must be new and technologically superior to the earlier capital goods. It must be used for the manufacture of the similar product for which the original EPCG licence was issued.

(ii) The export obligation for the new capital goods would be the difference of the sum total of 6 times the duty saved on both the capital goods and the exports already made under the old capital goods.

(iii) The export obligation period would be 8 years from the date of issuance of the new licence.

(iv) The block wise export obligation fulfillment would be as per Para 5.8 of this Handbook.

(v) The average export obligation for the upgraded capital goods would be the same as that of the capital goods being replaced.

The application for technological upgradation of the capital goods would be made in Appendix 9 E of the Handbook (Vol 1).