Clarification regarding Grant of Deemed Export Benefits for supplies to Mega Power Projects.

Government of India http://dgft.gov.in/exim/2000/cir/cir08/cir2908.htm[2/15/2017 3:47:36 PM] Government of India Department of Commerce Directorate General of Foreign Trade Udyog Bhavan, New Delhi-110011    Policy Circular No.  29  (RE-08)/2004-2009         Dated: 20th August, 2008   To           All Regional Authorities; Exporting Community.  

Subject: Clarification regarding Grant of Deemed Export

Benefits for supplies to   Mega Power Projects.             Department of Power has raised an issue that as per existing provisions in chapter 8 of Foreign Trade Policy, deemed export benefits to Mega Power Projects are available where either power procurement has been tied up though ICB procedure or if ICB procedure has been followed at Engineering and procurement contract (EPC) stage.   2.       The matter was discussed in the meeting chaired by Commerce Secretary and attended by DGFT, Addl. Secretary & Joint Secretary, Department of  Power & representative from Department of Economic Affairs.    3.       The representative from Department of Economic Affairs concurred with the viewpoint raised above.  Accordingly, it is clarified that  deemed export benefits are available   on supply of goods to Mega Power Projects: -   (i)      If power procurement from such projects has been tied up though ICB procedure; OR   (ii)              If ICB procedure has been followed by such projects at Engineering and procurement contract (EPC) stage.   Accordingly, the ICB procedure may be either at the stage of IPP or EPC.   This issues with the approval of Commerce Secretary.                                                                                                      Sd/- (Sanjay Rastogi) Export Commissioner