Government of India
Ministry of Commerce and Industry
Department of Commerce
Udyog Bhawan
Notification No.92(RE-2010) /2009-2014
New Delhi, the 28th December,2011
Subject: Amendment in Para 8.4.4(iv) of FTP
S.O (E) In exercise of the powers conferred by Section 5 of the Foreign Trade
(Development & Regulation) Act, 1992, as amended, read with paragraph 1.3 of the
Foreign Trade Policy, 2009-2014, the Central Government hereby makes the
following amendments in Paragraph 8.4.4 (iv) of Foreign Trade Policy, 2009-2014
(RE 2010).
2. At present Paragraph 8.4.4 (iv) of FTP contains a sentence “Supplier shall be
eligible for benefits listed in paragraph 8.3(a) and (b) of FTP, whichever is
applicable.” This sentence would now be replaced by a new sentence, “In respect
of non mega power projects, supplier shall be eligible for benefit listed in
paragraph 8.3 (a) of FTP.” Accordingly paragraph 8.4.4 (iv), incorporating this
amendment would read as under :
Amended Para 8.4.4(iv) of FTP {amended sentence has been highlighted}
“ Supply of Capital goods and spares upto 10% of FOR value of capital goods to
power projects in terms of paragraph 8.2(g), shall be entitled for deemed export
benefits provided the ICB procedures have been followed at Independent Power
Producer (IPP) / Engineering and Procurement Contract (EPC) stage. However, in
regard to mega power projects, the requirement of ICB would not be mandatory, if
the requisite quantum of power has been tied up through tariff based competitive
bidding or if the project has been awarded through tariff based competitive
bidding. Benefit of deemed exports shall also be available for renovation /
modernization of power plants. In respect of non mega power projects, supplier
shall be eligible for benefits listed in paragraph 8.3(a) of FTP. However,
supply of goods required for setting up of any mega power project as specified
in
S.No. 400 of DoR Notification No. 21/2002-Customs dated 1.3.2002, as amended,
shall be eligible for deemed export benefits as mentioned in paragraph 8.3(a),
(b) and (c) of FTP, whichever is applicable, if such mega power project complies
with the threshold generation capacity specified therein, in Customs
Notification.
Further, supply of goods required for the expansion of existing mega power
project as specified in Sl. no 400A of DoR Notification No. 21/2002- Customs
dated 1.3.2002, as amended shall also be eligible for deemed export benefits as
mentioned in paragraph 8.3 ( a), (b) and (c) of FTP, whichever is applicable.”
3. Effect of this amendment :
Supplies to non mega power projects shall henceforth be entitled to benefits for
Deemed Exports only under Para 8.3(a) of FTP, viz., Advance Authorisation /
Advance Authorisation for annual requirement / DFIA.
(Anup K. Pujari)
Director General of Foreign Trade
E-mail: [email protected]
(Issued from F.No. 01/92/180/168/AM05/PC VI)