Lok Sabha Question No. 2348 (UNSTARRED), answered on 2023-03-15
Subject: EPCG
Ministry: COMMERCE AND INDUSTRY
Asked by: Unmesh Bhaiyyasaheb Patil, Rita Bahuguna Joshi, Heena Vijaykumar Gavit, Krishna Pal Singh Yadav, Shrikant Eknath Shinde, Sujay Radhakrishna Vikhepatil

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2348 TO BE ANSWERED ON 15 th  MARCH,2023

## EPCG

## 2348.   SHRI UNMESH BHAIYYASAHEB PATIL:

PROF. RITA BAHUGUNA JOSHI:

DR. HEENA VIJAYKUMAR GAVIT:

DR. KRISHNA PAL SINGH YADAV:

DR. SHRIKANT EKNATH SHINDE:

DR. SUJAY RADHAKRISHNA VIKHE PATIL:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) whether the Government has provided relaxation to certain sectors under the Export Promotion Capital Groups (EPCG) Scheme and if so, the details thereof;
- (b) whether the Government has selected these sectors only to be benefitted under the relaxation and if so, the details thereof;
- (c) the reasons to provide this relaxation from the EPCG Scheme to these sectors;
- (d) whether a time period is decided for the relaxation to be continued; and
- (e) if so, the details thereof?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

(a): Yes  Sir.    Considering  the  adverse  impact  of  COVID-19  pandemic,  the  Government  has provided following relaxation for authorization issued under Export Promotion Capital Goods (EPCG) Scheme for Hotel, Healthcare and Educational sectors vide Public Notice No. 53/2015-2020 dated 20 th January, 2023.

- (i) for the years 2020-21 and 2021-22, no Average Export Obligation is required to be maintained.
- (ii) Export  Obligation  (EO)  period  may  be  extended  from  the  date  of  expiry  for  the  duration equivalent to the number of days EO period falls within 01.02.2020 and 31.03.2022.  Such extension shall be granted without payment of any composition fees.

(b): No Sir.  Benefits were also granted to EPCG authorization holders of all other sectors including Hotel, Healthcare and Educational sectors in the following manner. In order to mitigate the adverse impact caused by COVID-19 pandemic, Government issued Notification No. 57/2015-2020 dated 31 st March, 2020, Public Notice No. 67/2015-2020 dated 31 st March, 2020, Notification No. 28/2015-2020 dated 23 rd September, 2021 and Public Notice No. 53/2015-2020 dated 20 th January, 2023 which interalia provided relief for holders of the EPCG Authorisations. These reliefs have been stated below in brief:

- (i) If validity of EPCG authorizations expires during 1 st February, 2020 to 31 st July, 2020, such period is deemed to be automatically extended by further 6 months from the date of such expiry.
- (ii) If the EO period expires during 1 st February, 2020 to 31 st July, 2020, such period is deemed to be automatically extended by further 6 months from the date of such expiry.
- (iii) Time  limit  for  submission  of  installation  certificate  was  extended  automatically  by  6 months from date of expiry, where original expiry date falls within 1 st February, 2020 to 31 st July, 2020.
- (iv) For EPCG Authorizations, where original or extended EO period is expiring during the period  between  01.08.2020  and  31.07.2021,  the  EO  period  would  be  extended  till 31.12.2021  without  any  composition  Fees.    However,  this  extension  is  subject  to  5% additional EO in value terms (in free Foreign Exchange) on the balance EO on the date of expiry of the original/extended EO period.
- (v) Extension of EO period for EPCG authorizations was allowed from the date of expiry, for the number of days the existing EO period of an authorization falls within 01.02.2020 and 31.07.2021.  Such EO extension may be granted without payment of composition fees. However, this extension is subject to 5% additional EO in value terms (in free Foreign Exchange) on the balance EO as on 31.03.2022.
- (vi) Under EPCG scheme to provide relief to exporters of those sector where total export in the sector/product  group has declined by more than 5% as compared to the previous year, Government issues Policy Circulars in order that the average export obligation for the year may be reduced proportionate to reduction in exports of that particular sector/product group during the relevant year as against the preceding year. DGFT has issued Policy Circular's No.  37/2015-20  dated  10 th September,  2021,  43/2015-20  dated  27 th July,  2022  and 44/2015-20 dated 17 th November, 2022 in this regard.

(c): The relaxations have been provided to EPCG authorization holders on account of hardship caused by the COVID-19 Pandemic.

(d) & (e) : No such proposal is under consideration.

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