Deemed Export benefits for (i) Vindhyachal STPP Stage - II in Madhya Pradesh and (ii) Kayamkulam CCPP in Kerala, subsequent to closure of World Bank loan in March, 1999 - DGFT - 18 (RE-01)/1997-2002

Deemed Export benefits for (i) Vindhyachal STPP Stage - II in Madhya Pradesh and (ii) Kayamkulam CCPP in Kerala, subsequent to closure of World Bank loan in March, 1999. PUBLIC NOTICE NO. 18(RE-01)/1997-2002 Dated : 07/06/2001 Sub: Deemed Export benefits for (i) Vindhyachal STPP Stage - II in Madhya Pradesh and (ii) Kayamkulam CCPP in Kerala, subsequent to closure of World Bank loan in March, 1999. In exercise of the powers conferred under Paragraph 4.11 of the Export and Import Policy, 1997-2002, as notified in the Gazette of India Extraordinary, Part II, Section 3, Sub-Section (ii) vide S.O. No. 283(E) dated 31.3.1997, the Director General of Foreign Trade hereby makes the following amendments - As per Paragraph 10.2(d) of the EXIM Policy, 1997-2002 read with Appendix 40 of Hand Book of Procedures, Vol. 1, 1997-2002, supply of goods to projects financed by World Bank (IBRD IDA) are entitled for deemed export benefits as given under Paragraph 10.3 of EXIM Policy. (i) Vindhyachal Super Thermal Power Project (STPP) Stage - II in Madhya Pradesh; and (ii) Kayamkulam Combined Cycle Power Project (CCPP) in Kerala are likely to be financed by further World Bank (IBRD IDA) loans. The matter of extending deemed export benefits for supply of goods to the above stated projects has been considered in consultation with Ministry of Finance. It has been decided that deemed export benefits as given under Paragraph 10.3 of the EXIM Policy shall be available for supplies of goods to the above stated projects, as if these projects are financed by World Bank (IBRD IDA). In case the bids are invited under the World Bank Procedures and the World Bank loan fails to come through, for any reason, the deemed export benefits would be available as if the supplies have been effected under Paragraph 10.2(d) of the EXIM Policy. However, in case further World Bank loan is not available to NTPC, for any reasons, then in respect of supplies made from 1.4.1999 (effective date of closure of World Bank loan) to 31.3.2000, National Thermal Power Corporation Ltd. (NTPC) would reimburse to the Government of India the cash equivalent of the two benefits i.e. benefit of (i) Special Imprest Licence/Advance Intermediate Licence and (ii) deemed export drawback scheme availed by the suppliers for the above stated projects under Paragraph 10.3(a) and (b) of the Exim Policy, 1997-2002. In respect of supplies made after 1.4.2000, in the eventuality of World Bank funding not being available, for any reason, NTPC would reimburse the cash equivalent of deemed export benefit of Refund of Terminal Excise Duty, availed by the suppliers under Para 10.3 (c) of the Exim Policy 1997-2002, for the above stated projects. This issues in Public interest. ( N.L. Lakhanpal ) Director General of Foreign Trade