Under the Export Promotion Capital Goods (EPCG) plan, the government has announced a one-time relief from maintaining average export obligations as well as the opportunity to prolong the export obligation duration for selected industries.
The hotel, hospital, and educational industries are also eligible for this benefit.
These industries will not be obliged to maintain average export obligations for EPCG authorizations awarded to them in 2020-21 and 2021-22.
These industries will also be able to prolong the export obligation period for a longer length of time without paying any additional costs.
The export obligation time for EPCG authorizations given for the hotel, healthcare, and educational sectors will be extended from the date of expiry for the number of days the export requirement period falls between 1 February 2020 and 31 March 2022.
This extension will be granted without the need to pay any composition costs.
However, for EPCG authorizations given for industries other than hospitality, healthcare, and education, the export obligation term may be extended for the number of days that the existing export obligation period falls between 1 February 2020 and 31 July 2021.
This extension will be granted without the payment of composition costs, but with a 5 per cent increase in value on the balance export obligation as of 31 March 2022.
