9.37

Apart from the original powers under the Policy and Handbook (Vol.1), the Development Commissioners have been delegated with the following powers in respect of EOU/EPZ units :

(a)Approval of units:

Applications for setting up of units in EPZ or as EOU outside the EPZ, other than proposals for setting up of unit in the services sector (except software and IT enabled services, trading or any other service activity as may be delegated by the BOA) and conversion of sick/closed DTA unit into EOU, satisfying the following conditions, may be approved by the Development Commissioner;

(i) the item of manufacture does not require an industrial license under the Industries (Development & Regulation) Act, 1951;

(ii) location of the unit is either in the EPZ (for which availability of space and conformity with environment and other standards of EPZ have been confirmed) or in an area other than the EPZ for which the locational conditions stipulated by the Department of Industrial Policy & Promotion have been complied with;

(iii) the unit undertakes to achieve the minimum NFEP and EP as stipulated in Appendix 1 of the Policy;

(iv) Deleted.

(v) foreign technology agreement, if any, is as per the RBI guidelines;

(vi) Conversion of existing DTA unit into EOU conforms to paragraph 9.3 above;

(vii) Conversion of EOU to STP/EHTP and vice versa as per procedure laid down in paragraph 9.3 above;

(viii) EOUs on leased premises provided the lease agreement is for a minimum period of 5 years.


(b) Powers for post approval matters:

(i) Deleted.

(ii) Currency Fluctuation: to allow increase in the value of capital goods in terms of Indian Rupees, on account of foreign exchange rate fluctuations;

(iii) Enhancement of production capacity: to permit capacity enhancement without any limit in case of de-licensed industries only;

(iv) Broad banding/diversification: to permit broad-banding/diversification;

(v) Change in name: to authorise change in name of the company or the implementing agency and change from a company to another provided the new implementing agency/company undertakes to take over the assets and liabilities of the existing unit;

1) Deleted

2) Deleted.

(vi) Change of location/expansion: To permit change of location from the place mentioned in the LOP/LOI to another and/or include additional location provided that:

(Opening para 9.37 b)(vi) is substituted vide PN. No. 34(RE-01), Dt. 31/8/2001.)

(a) no change in other terms and conditions of the approval is envisaged.

(b) the new location is within the territorial jurisdiction of the DC.

(c) Deleted

(d) other locational, zoning, land-use or environmental conditions are also complied with;

(vii) Extension of validity of LOP/LOI: To extend the validity period of LOP/LOI by three years, beyond the initial validity period of the LOP/LOI (except in case where there is a restriction on initial period of approval, like setting up of oil refinery projects);

The Development Commissioner may also cancel LOP/LOI/IL wherever warranted.

(viii) Deleted.

(ix) Deleted.

(x)Merger of two or more EOU/EPZ units: To permit merger of two or more units into one unit provided the units fall within the jurisdiction of the same DC.

(Para 9.37 b)(x) is substituted vide PN. No. 34(RE-01), Dt. 31/8/2001.)

(xi)deleted.

(Para 9.37 b)(xi) deleted vide PN. No. 34(RE-01), Dt. 31/8/2001.)

[OLD
(xi) Exports to Russian Federation against repayment of State Credit: To permit exports to Russian Federation against payment in Indian Rupees against repayment of State Credit/Escrow Rupee Account of the buyer subject to currency balancing, i.e hard currency outgo on import of raw materials, components and consumables, used in the goods exported, against rupee payment is at least made up by equivalent export to the hard currency area.

The currency balancing condition shall be fulfilled over a period of one year and a letter of undertaking obtained from the exporting unit that in the event of its failure to achieve currency balancing by the end of the year, it shall be liable to pay applicable duties on the imported inputs used in the manufacture of the goods so exported. Permission may be granted by the Development Commissioner to export to RPA on quarterly basis in advance subject to currency balancing on the basis of projections given by the unit]

(xii) Deleted

(xiii) Development Commissioner has been delegated with powers of adjudication under Section 13 read with Section 11 of Foreign Trade (Development & Regulation) Act, 1992 in respect of EOU/EPZ units as mentioned in Gazette Notification No. SO. 194(E) dated 6.3.2000.

(xiv) Eviction of EPZ unit under Public Premises Act:

In case the rent on the plot/built up premises allotted to EPZ units is in arrears or if the plot/shed is not utilised for the purpose for which the same has been allotted, the Development Commissioner shall have the power to get the premises vacated under the Public Premises Act.

(xv) Development Commissioner has been authorised to do valuation of exports declared on SOFTEX form by the units located in Export Processing Zones as per RBI A.D. (M.A Series) Circular No. 35 dated 25.11.1999.

(xvi) Development Commissioner has been authorised to issue eligibility certificates for grant of employment visa to low level foreign technicians to be engaged by EOU/EPZ units as per Ministry of Home Affairs’ letter No. 25022/7/99-F.1 dated 20.9.1999.