Letter of Permission/ Letter of Intent and Legal Undertaking

6.6

(a) On approval, a Letter of Permission (LOP) /Letter of Intent (LOI) shall be issued by the Development Commissioner to EOU/EHTP/STP/BTP unit. The LOP/LOI shall have an initial validity of 3 years by which time the unit should have commenced production. Its validity may be extended further up to 3 years by the competent authority. However, proposals for extension beyond six years shall be considered in xceptional circumstances, on a case-to-case basis by the BOA. Standard format for the extension of LOP is given at Appendix MM. Once the 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 the Development Commissioner for a period of 5 years at a time.

(b) LOP/LOI issued to EOU/EHTP/STP/BTP units by the concerned authority would be construed as a licence for all purposes.

(c) The unit shall execute a legal undertaking with the Development Commissioner concerned . Failure to ensure positive NFE or to abide by any of the terms and conditions of the LOP/LOI/IL/LUT shall render the unit liable to penal action under the provisions of the Foreign Trade (Development & Regulation) Act, 1992 and the Rules and Orders made there under without prejudice to action under any other law/rules and cancellation or revocation of LOP/LOI/IL.

Investment Criteria

(d) Only projects having a minimum investment of Rs.1 crore in plant and machinery shall be considered for establishment as EOUs under the scheme. This shall, however, not apply to existing units and units in EHTP / STP/ BTP, Handicrafts/ Agriculture/ Floriculture/Aquaculture/ Animal Husbandry/Information Technology, Services, Brass hardware , handmade Jewellery and such other sectors as may be decided by the BOA. Sector-wise investment criteria shall be fixed by BOA.