About Export Promotion Capital Goods (EPCG) Scheme:
- It is a trade promotion scheme implemented by the Indian government.
- It allows the duty-free import of capital goods for the purpose of export production in India.
- It was first operationalized on 1 April 2015.
- Aim: To encourage the production of goods for export by providing import duty concessions on capital goods.
- The EPCG scheme is administered by the Directorate General of Foreign Trade (DGFT) and is governed by the Foreign Trade Policy of India.
- Features:
- EPCG Scheme allows import of capital goods for pre-production, production and post-production at zero customs duty.
- It covers manufacturer exporters with or without supporting manufacturer(s), merchant exporters tied to supporting manufacturer(s) and service providers.
- Second-hand goods of any nature will not be permitted under the EPCG scheme.
What is the PM MITRA Scheme?
- It will offer the opportunity to create an Integrated Textiles Value Chain, right from spinning, weaving, processing/dyeing and printing to garment manufacturing etc., at one location and will reduce the logistics cost of the Industry.
- PM MITRA Parks will help in creating world-class industrial infrastructure that would attract large-scale investment, including foreign direct investment (FDI) and encourage innovation and job creation within the sector.
- Special Purpose Vehicle owned by the Centre and State Government will be set up for each park which will oversee the implementation of the project.
- Funding:
- The Ministry of Textiles will provide financial support in the form of Development Capital Support up to Rs. 500 crores per park to the Park SPV.
- A Competitive Incentive Support (CIS) of up to Rs 300 crore per park to the units in PM MITRA Park shall also be provided to incentivise speedy implementation.
- State governments will provide a contiguous and encumbrance-free land parcel of at least 1000 acres of land.
