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In terms of chapter 8 of the foreign trade policy certain domestic transactions are deemed as exports and benefits and incentives that normally accrue to physical exports are also available to such transactions. To be eligible for such a favorable treatment, the entity must be following ICB route to procure capital goods and other materials needed for setting up and running the project. Mainly infrastructurre companies, mega power projects, fertiliser projects come under this category.

Under the ICB route, the firms have to advertise through print media and other public media inviting tenderers/suppliers to bid for their requirments. The whole process should be transaparent and there should be no restrictions with regard to supppliers.

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