"This relaxation has been provided in light of the economic slowdown caused by the COVID-19 pandemic. This relief will help the hotel, healthcare and educational sectors to cope with the negative impact of the pandemic on their export activities," the statement said.
For 2020-21 and 2021-22, these sectors will not be required to maintain the average export obligation for EPCG authorisations issued to them.
"The government has announced a one-time relaxation from maintaining the average export obligation and an option to extend the export obligation period for certain sectors under the EPCG scheme," it said.
These sectors will also have the option to extend the export obligation period for a longer duration without having to pay any additional fees.
In such cases, the extension will be granted without payment of composition fees, but with a 5 per cent additional export obligation in value terms on the balance export obligation as on March 31, 2022.
The scheme aims to encourage the production of goods for export by providing import duty concessions on capital goods. It is administered by the Directorate General of Foreign Trade (DGFT) and is governed by the Foreign Trade Policy of India.
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