5.8

Technological Upgradation of existing EPCG machinery

EPCG Authorization holders can opt for Technological Upgradation of existing capital good imported under EPCG Authorization.

Conditions governing Technological Up-gradation of existing capital goods are as under:

(i) Minimum time period for applying for Technological Upgradation of existing capital goods imported under EPCG is 5 years from Authorization issue-date.

(ii) Minimum exports made under old capital goods must be 40% of total export obligation imposed on first EPCG Authorization.

(iii) Export obligation would be re-fixed such that total export obligation mandated for both capital goods would be sum total of 6 times of duty saved on both the capital goods, to be fulfilled in 8 years from new authorization issue-date.

(iv) Facility for technological up-gradation shall be available only once and the minimum imports to be made shall be at least 10% of the existing investment in plant and machinery by applicant.

(v) Capital Goods to be imported must be new and technologically superior to earlier CG.