Export promotion capital goods scheme norms relaxed for Covid-affected sectors
The government has announced a one-time relaxation from maintaining average export obligations and an option to extend the export obligation period for certain sectors under the Export Promotion Capital Goods (EPCG) scheme.
The sectors that are eligible for this relief are the hotel, healthcare and educational sectors.
For 2020-21 and 2021-22, these sectors will not be required to maintain average export obligation for EPCG authorisations issued to them.
These sectors will also have the option to extend the export obligation period for a longer duration, without having to pay any additional fees.
For EPCG authorisations issued for the hotel, healthcare and educational sectors, the export obligation period would be extended from the date of expiry for the duration equivalent to the number of days the export obligation period falls within February 1, 2020 and March 31, 2022.
This extension will be granted without payment of composition fees.
However, for EPCG authorisations issued for sectors other than hotel, healthcare and educational, the export obligation period may be extended for the number of days the existing export obligation period falls within February 1, 2020 and July 31, 2021.
This extension will be granted without payment of composition fees, but with a 5 per cent additional export obligation in value terms on the balance export obligation as on March 31, 2022.
