Net Foreign Exchange Earnings (NFE)

6.10.1

EOU/EHTP/STP/BTP unit shall be a positive net foreign exchange earner. Net Foreign Exchange Earnings (NFE) shall be calculated cumulatively for a block of five years from the commencement of production according to the formula given below. Items of manufacture for export specified in the Letter of Permission (LOP)/ Letter of Intent (LOI) alone shall be taken into account for calculation of NFE.

Positive NFE = A-B > 0

Where

NFE is Net Foreign Exchange Earning.

‘A’ is the FOB value of exports by the EOU/EHTP/STP/BTP unit; and

‘B’ is the sum total of the CIF value of all imported inputs and the CIF value of all imported capital goods, and the value of all payments made in foreign exchange by way of commission, royalty, fees, dividends, interest on external borrowings/ high sea sales during the first five year period or any other charges. "Inputs" mean raw materials, intermediates, components, consumables, parts and packing materials