Policy Circular No. 38/97 dt. 17.3.1998

Deemed Exports -CG Supply to Transmission Projects Not Covered.

Subject:- Supply of capital goods to the Power Projects in terms of Para 10.2(g) of EXIM Policy, 1997-2002.

Attention is invited to paragraph 10.2(g) of EXIM Policy I 1997 -2002, read with paragraph 10.11 of Handbook or Procedures, Vol. I, 1997-2002, according to which the supply of goods to the Power Sector has been extended deemed export benefits.

2 Various representations have been received seeking clarification as to whether supply to Power transmission projects which inter alia include Transmission Line, substations, load dispatch and communication projects are entitled for deemed export benefits or not in terms of Para 10.2(g) of the EXIM Policy read with Para 10. 11 of Handbook of Procedures, Vol. 1. The matter has been considered in Consultation with Deptt. of Economic Affairs and it is clarified that existing deemed,Export dispensation in the power sector would not be available to domestic suppliers for supply to Such transmission projects.

3. This issues with the approval of DGFT

Sd/-
(L.B. Singhal)
Dy. Director General of Foreign Trade

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