6.01 — Application / Approval / Renewal of approval

• (a) For setting up an EOU, three copies of application as in ANF 6A of Appendices &ANFs may be submitted to DC.

• (b) (i) Applications for setting up units under EOU scheme shall be approved or rejected by Units Approval Committee within 15 days, as per criteria indicated in Appendix 6A of Appendices & ANFs and sector specific conditions relating to approval as in Appendix 6B of Appendices & ANFs. In other cases, approval may be granted by DC after clearance by BOA.

  • (ii) STP / EHTP complexes can be set up by Central Government, State Government, Public or Private Sector Undertakings or any combination thereof, duly approved by Inter-Ministerial Standing Committee (IMSC) in Ministry of Electronics & Information Technology-MeitY. Application for setting up EHTP / STP unit shall be in format prescribed by MeitY and shallbe submitted to officer designated by MeitY.

  • (iii) A BTP can be set up by Central Government, State Government, Public or Private Sector Undertakings or any combination thereof. Application for setting up of BTP shall be submitted to Department of Bio-Technology (DoBT) and such applications which meet guidelines prescribed by DoBT will be approved and recommended to DGFT for notification. Application for setting up of BTP unit shall be submitted to officer designated by DoBT.

• (c) On approval, a Letter of Permission (LoP) / Letter of Intent (LoI) shall be issued by DC / designated officer to EOU/ EHTP /

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unit shall be submitted to officer designated by DoBT.

• (c) On approval, a Letter of Permission (LoP) / Letter of Intent (LoI) shall be issued by DC / designated officer to EOU/ EHTP /

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STP / BTP unit. LoP / LoI shall have an initial validity of 2 years to enable the Unit to construct the plant & install the machinery and by this time the unit should have commenced production. In case the unit is not able to commence production in the initial validity period of 2 years, an extension of one year may be given by the DC for valid reasons to be recorded in writing. Subsequent extension of one year may be given by the Unit Approval Committee subject to condition that two thirds of activities including construction, relating to the setting upof the Unit are completed and a Chartered Engineer’s certificate to this effect is submitted by the Unit. Further extension, if necessary, will be granted by the Board of Approval. Once unit commences production, LoP / LoI issued shall be valid for a period of 5 years for its activities. This period may be extended further by DC for a period of upto 5 years at a time. However, in case of extension of LoP required for completing exit formalities, the LoP may be extended for a limited period i.e. less than 5 years by the DC.

• (d) Proposals for setting up an EOU requiring industrial licence may be granted approval by the concerned DC after clearance of proposal by BOA (as per Appendix 6C of Appendices & ANFs) and Department for Promotion of Industry and Internal Trade (DPIIT) within 45 days.

granted approval by the concerned DC after clearance of proposal by BOA (as per Appendix 6C of Appendices & ANFs) and Department for Promotion of Industry and Internal Trade (DPIIT) within 45 days.

• (e) LoP / LoI shall specify item(s) of manufacture / service activity, annual capacity, projected annual export for first five years in dollar terms, Net Foreign Exchange (NFE) earnings, limitations, if any, regarding sale of finished goods, by-products and rejects in DTA and such other matter as may be necessary and also impose such conditions as may be required.

• (f) LoP / LoI issued to EOU / EHTP / STP / BTP units by concerned authority would be construed as an authorisation for all purposes. Standard format for LoP for EOU is given in Appendix 6D of Appendices & ANFs.

• (g) EOUs shall have separate earmarked premises for separate LoP. Similarly, EOUs may be approved on leased premises provided lease has been obtained from Government Department / Undertaking / Agency. However, in case lease is obtained from private parties, it shall have a validity period of five years from date of LUT and DC shall satisfy himself of genuine nature of lease.

• (h) On completion of validity of LOP/LOI as provided for in Paragraph 6.05 of FTP, it shall be open to unit to continue under

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and DC shall satisfy himself of genuine nature of lease.

• (h) On completion of validity of LOP/LOI as provided for in Paragraph 6.05 of FTP, it shall be open to unit to continue under

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scheme or opt out of scheme. Where unit opts to continue, DC/Designated Officer will extend validity of the LOP/LOI. If no intimation in this regard is received from unit within a period of six months of expiry of the validity, DC/Designated Officer will, suomoto, take action to cancel approval under the scheme and take further action in this regard. Where units give their option to continue after expiry of six months as stipulated above, DC/Designated Officer will grant extension after obtaining approval of BOA/IMSC.