The scheme is quite beneficial to Manufacturer exporters as they can import their CG at a substantial discount. Especially for those manufacturers whose final product is not excisable or is exempt from excise duty (like those in Uttaranchal) since they cannot take the CENVAT credit of the CVD paid on imports and Excise Duty paid in Domestic markets.
Tied with the supporting manufacturers can also utilize the scheme for concessional duty import of Capital Goods to be installed at the supporting manufacturers.
EPCG can be taken for the projects where exports of goods or services can be envisaged by the use of the project or alternative products. EPCG can be taken along with Project Import scheme in case of new Projects.
Various service providers/exporters can take EPCG route to reduce their Capital Cost. Service Providers like Hotels, Tour Operators, Taxi Operators, Construction Companies, Logistics companies can utilize the scheme to import/procure from domestic market, their capital goods at a substantially reduced costs. The EO can be fulfilled by Forex Earnings through providing services, like that of Foreign Guests staying in the hotel, medical tourism etc.
Certain other sectors like Retail Sector in the country, Port Projects etc. can also utilize EPCG scheme to their advantage.