ICB procedure may be either at the stage of IPP or EPC
As per existing provisions in Chapter 8 of the Foreign Trade Policy, deemed export benefits are available for supply of goods to Mega Power Projects. Department of Power has raised an issue whether the deemed export benefits to Mega Power Projects are available where either power procurement has been tied up though ICB procedure or if ICB procedure has been followed at Engineering and procurement contract (EPC) stage.
The matter was discussed in the meeting chaired by Commerce Secretary and attended by DGFT, Addl. Secretary & Joint Secretary, Department of Power & representative from Department of Economic Affairs and it is clarified that deemed export benefits are available on supply of goods to Mega Power Projects: -
(i) If power procurement from such projects has been tied up though ICB procedure OR
(ii) If ICB procedure has been followed by such projects at Engineering and procurement contract (EPC) stage.
Accordingly, the ICB procedure may be either at the stage of IPP or EPC.
ICB = International Competitive Bidding
IPP = Independent Power Producer.
POLICY CIRCULAR NO Dated: August 20, 2008