Industrial Projects | IBRD/IDA/ADB/UN Funded Projects | Power Projects | Oil Exploration Projects |Water Projects
Projects can get benefited under the following schemes:
Initial Setting up of Industrial Plants, Irrigation Projects, Power Projects, Mining Projects, Oil Exploration Projects and certain other projects as notified by the government can get the benefits of Project Imports Scheme. Under the Scheme all goods being imported for the purpose can be assessed under one heading thus obviating any disputes with customs with regard to their classification.
Concessional Duty: Effective duties for the project are lower than the normal and depends on the kind of Project. For Industrial Projects/ Non Mega Power Projects etc. , all items covered under the Project Imports now attracts only 5% Basic Customs Duty. In addition IGST is leviable which makes the total duty to approx. 24.07%. As against a normal total of 27.1% this offers a saving of approx. 3%.
EPCG can also be availed of along with the Project Imports. This simultaneous availment of two schemes can lower the export obligations under EPCG scheme.
Supplies to following projects are considered as deemed exports and they get the benefits as follows:
Mega Power: Mega Power Projects where International Competitive Bidding procedures have been followed at the IPP or at EPC stage can get the benefit of Deemed Exports for their domestic procurement. The benefits could be in the form of Advance Authorization, or Duty drawback on the inputs. The benefits can be availed by the Contractor/Sub-contractors or other suppliers. In addition the Mega Power Projects can get the benefits of excise duty refunds exemption or refunds also. The benefits can be taken by the suppliers or the Project owners themselves.
Projects funded by World Bank/IBRD/IDA/ADB/UN agencies: Projects funded as above where ICB procedures have been followed can get the benefit of Deemed Exports for their domestic procurement.
The benefits could be in the form of Advance Authorization, or Duty Drawback on the Inputs and GST Refunds on the outputs. The benefits can be availed by the Contractor/Sub-contractors or other suppliers. The benefits can be taken by the suppliers or the Project owners themselves.
Other purposes like Oil Exploration businesses for which duty free imports are allowed