EPCG( Export Promotion Capital Goods ):  

The Zero Duty EPCG Scheme has been an important instrument for increasing technology intensity of our exports. This scheme was scheduled to expire in March 2013. In a major decision, India has decided not only to extend the Zero Duty EPCG scheme beyond March 2013, but also merge it with 3% EPCG Scheme. Now the Zero Duty EPCG benefits will be available to all sectors. We have also undertaken a major simplification of the EPCG scheme, details of which will be available through separate notification. Further, for units located in J&K, North East and Sikkim, exporters would be required to achieve 25% of normal export obligation under the scheme. Time period for completion of export obligation for BIFR units has been extended to 9 years instead of 6 years in normal cases.


                 Indian Government would like to encourage the exporters to procure capital goods

domestically and thus Government has decided that if a EPCG authorization holder 
procures capital goods from domestic market, the export obligation of such authorization shall be reduced by 10%. Being Textile Minister, I have been conscious of the demands and aspirations of the textile industry. Hitherto, any exporter who had obtained benefits under the Technology Up gradation Fund Scheme was in-eligible for obtaining benefits under Zero Duty EPCG Scheme.
 Government has now decided that even an exporter who has obtained benefits under TUFS Scheme, will be eligible for benefits of Zero Duty EPCG Scheme. This  will provide a push to the labour intensive textile industry.