Project Imports explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Heading 98.01 of the First Schedule to the Customs Tariff Act, 1975 lets the goods of a project be assessed together, and the Project Imports Regulations, 1986 decide which projects qualify and how the contract is registered. The regulations have been changed twice since 2022: solar power plants and projects were taken out of "any other plant and project" from 2 February 2023, and Jaipur Metro projects were added to the metro list from 29 November 2025. This guide sets out the procedure and both changes. For help with the importer's contract file, see our compliance documentation service.
The position stated here is as amended up to Notification No. 49/2025-Customs dated 28 November 2025. Later notifications should be checked; no official consolidated text exists, and the CBIC regulations list still shows the text of 19 October 2022.
Heading 98.01 assessment is available only to goods imported against one or more specific contracts registered with the appropriate Custom House before the proper officer permits clearance for home consumption (regulation 4). The application goes to the proper officer with the original deed of contract, a true copy, any licence required and an approved list of items from the concerned sponsoring authority (regulation 5). The importer then files a statement with proof of value and quantity within three months of clearance of the last consignment, or an extended period the proper officer allows (regulation 7). The regulations print no duty rate; the rate comes from the tariff and the exemption notifications in force.
Which goods and which projects
Regulation 2 applies the regulations to the assessment and clearance of goods under heading 98.01. Regulation 3 defines the terms. An "industrial plant" is an industrial system designed to be employed directly in a process or series of processes necessary for manufacture, production or extraction of a commodity. It does not include establishments designed to offer services such as hotels, hospitals, photographic studios, laundries, garages and workshops, nor a single machine or a composite machine within Notes 3 and 4 to Section XVI. The Explanation says video and cinematographic units and sound studios are not treated as service establishments for this purpose. "Substantial expansion" means an expansion which will increase the existing installed capacity by not less than 25 per cent. The full discussion is in Regulations 1 to 4.
The sponsoring authority table
Each project type in the Table annexed to the regulations has its own sponsoring authority. The table, in summary:
| Sr. No. | Project type | Sponsoring authority |
|---|---|---|
| 1 | All plants and projects under SSI units | Director of Industries of the concerned State |
| 2 | All power plants and transmission projects, other than solar power plants or solar power projects (listed bodies such as NTPC, NHPC, Power Grid) | The listed corporations or boards |
| 3 | Power plants and transmission projects, other than solar and other than Sr. No. 2 | Secretary to the State Government or Union Territory dealing with power or electricity |
| 3A, 3C | Drinking water supply; water supply projects | Collector, District Magistrate or Deputy Commissioner of the district |
| 3B | Aerial passenger ropeway project | Joint Secretary, Ministry of Tourism, or the State tourism Secretary |
| 3D | Pipeline projects for crude oil, petroleum products or natural gas | Ministry of Petroleum and Natural Gas |
| 3F, 3FF | Metro rail or monorail projects (3FF lists named metro rail projects) | State Government (3F); named corporations (3FF) |
| 3FFF | High speed rail projects | National High Speed Rail Corporation Limited |
| 3G, 3H, 3-I | Food-grain handling, cold storage and food processing, green houses | Ministry of Agriculture or Ministry of Food Processing Industries as printed |
| 4 | Any other plant and project, other than solar power plant or solar power project | Concerned Administrative Ministry or Department |
The complete table with each named authority is in the eligible projects and sponsoring authorities table.
The two recent changes
2023: solar projects out of Sr. No. 4. Notification No. 07/2023-Customs dated 1 February 2023, in force from 2 February 2023, substituted in Sr. No. 4 the words "Any other Plant and Project, other than solar power plant or solar power project". The same exclusion already appeared in Sr. Nos. 2 and 3 from 20 October 2022 (Notification No. 54/2022-Customs). On the printed Table, therefore, a solar power plant or solar power project has no sponsoring-authority entry under Sr. Nos. 2, 3 or 4. Check the tariff and notifications in force before treating any solar project as a project import.
2025: Jaipur Metro. Notification No. 49/2025-Customs dated 28 November 2025, in force from 29 November 2025, inserted item (xiv) "Jaipur Metro Projects" in Sr. No. 3FF, with the Managing Director or Director (Project) of Rajasthan Metro Rail Corporation Limited (RMRCL) as sponsoring authority. It follows the Bhopal and Indore entries (items (xii) and (xiii)), which have the Madhya Pradesh Metro Rail Corporation Limited as authority.
Step by step
| Step | What the regulation says |
|---|---|
| 1. Obtain the licence or sponsor clearance | Apply for registration as soon as may be after the import trade control licence, wherever required, is obtained; for Open General Licence imports and Government Agency imports, as soon as clearance from the concerned sponsoring authority is obtained (regulation 5(2)) |
| 2. Apply in writing | To the proper officer at the port of import or where duty is paid; the application states plant location, articles to be produced, installed or designed capacity and the proposed addition for an expansion, and other particulars the officer needs (regulation 5(1) and (3)) |
| 3. Attach documents | Original deed of contract with a true copy, the licence where required, the approved list of items from the sponsoring authority and other documents required (regulation 5(4) and (5)) |
| 4. Registration | The proper officer registers the contract in a book, assigns a number and returns documents no longer required (regulation 5(6)) |
| 5. Amendments | Register any amendment to the contract, before or after registration (regulation 6) |
| 6. Clear the goods | Registration must come before the order permitting clearance for home consumption (regulation 4) |
| 7. Finalise | Statement with proof of value and quantity within three months of clearance of the last consignment, or an extended period allowed (regulation 7) |
Regulations 5 to 7 are explained in more detail in Regulations 5 to 7. Where duty is assessed on a provisional basis while documents are pending, see Section 18: Provisional Assessment.
Common mistakes
- Registering the contract after clearance has been ordered; regulation 4 requires registration before the order.
- Describing a duty rate or a bond requirement as part of these regulations; they print neither.
- Applying without the sponsoring authority's approved list of items.
- Treating a solar power project as eligible under Sr. No. 2, 3 or 4 without checking the current notifications.
- Missing the three-month statement after the last consignment, or forgetting to apply for an extension.
- Not registering an amendment to the contract.
Need help with a project import contract?
A registration file needs a clean contract, the sponsor's list and a consistent description of the plant. We can review the papers and prepare the finalisation statement through our compliance documentation service.
Key takeaways
- Heading 98.01 treatment needs a contract registered before clearance (regulation 4).
- The Table fixes the sponsoring authority for each project type.
- Solar power plants and projects are excluded from Sr. Nos. 2, 3 and 4 (2022 and 2023 changes).
- Jaipur Metro Projects are item (xiv) of Sr. No. 3FF from 29 November 2025.
- Finalise within three months of the last clearance unless extended.
Read next
- Regulations 1 to 4 of the Project Imports Regulations, 1986
- Regulations 5 to 7: registration, amendment and finalisation
- Eligible projects and sponsoring authorities
- Section 25: Power to Grant Exemption
Disclaimer: Based on the Project Imports Regulations, 1986 as printed by CBIC (text of 19 October 2022) with Notification Nos. 07/2023-Customs and 49/2025-Customs applied. Later amendments should be checked. This article is general information, not legal advice; check the official text before acting.