The government today banned duty- free import of capital goods for power generation and transmission projects under the EPCG Scheme.
The decision is aimed at encouraging manufacturing of power equipment and giving a push to domestic capital goods sector, with an aim to boost the overall economy.
Amending the Foreign Trade Policy 2015-20, the Directorate General of Foreign Trade (DGFT) said in an order: "Authorisation under EPCG Scheme shall not be issued for import of any Capital Goods for generation/transmission of power (including Captive plants and Power Generator Sets of any kind)..."
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The Export Promotion Capital Goods (EPCG) scheme allows import of capital goods for pre-production, production and post-production at zero custom duty.
The government has fixed a target of 88,537 MW power generation capacity addition for the 12th Plan period ending 2016-17.
Till December 2015, 72,240.12 MW or 81.59 per cent of the target has achieved, as per the Central Electricity Authority data.
