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.