6.27

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, or any other service activity as may be delegated by the BOA) reconditioning, repair and reengineering 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) Foreign technology agreement, if any, is as per the RBI guidelines;

(v) Conversion of existing DTA unit into EOU conforms to paragraph 6.21 above;

(vi) Conversion of EOU to STP/EHTP and vice versa as per procedure laid down in paragraph 6.21 above;

(vii) EOU/EPZ units shall have separate ear-marked premises for separate LOP/LOI. Similarly, EOUs may be approved in lease premises provided the 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 the date of LUT and the Development Commissioner shall satisfy himself of genuine nature of the lease.

(Above (vii) has been amended vide PN. No. 40/2002-07, Dt. 08/10/2002)

(vii) Approval for setting up of EOU/EPZ units shall be given by the Development Commissioner after personal hearing and satisfying the criteria indicated at Appendix 14-B of the Handbook.

b) Powers for post approval matters

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

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

(iii) Broad banding: Broad-banding shall be considered by the Development Commissioner only for similar goods and activities mentioned in the LOP/LOI or to provide for backward or forwarded linkages to the existing line of manufacture..

(iv) 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;

(v) 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:

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

(d) Extension of validity of LOP/LOI: To extend validity period of LOP/LOI by two 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) ;

(e) To recommend extension of LOP/LOI to BOA along with field inspection report of the unit for the sixth year.

(f) The Development Commissioner may also cancel LOI/LOI/IL wherever warranted.

(Above para b) (v) has been re-numbered vide PN No. 16/2002, Dt. 05/06/2002)

(vi) Merge of two or more EOU.EPZ units: To permit merger of two or more units into one unit provided the units fall with in the jurisdiction of the same DC subject to the conditions that the activities are covered under the provision of broad binding.

(vii) 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.

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

(ix) 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.

(x) 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 and A P (DIR series Circular No.9 dated 25.10.2001) for EOUs.

(xi) 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.

Registration-cum-Member-ship Certificate

(xii) Registering authority for EOU/EPZ/EHTP/STP units shall be the concerned Development Commissioner. A separate Registration-cum-Membership Certificate shall not be required in their cases as provided for in paragraph 2.44 of the Policy.

Importer-Exporter Code Number

(xiii) Importer-Exporter Code number for EOU/EPZ units shall be allotted by the concerned Development Commissioner if the same has already not been allotted to the entity.

Green Cards for EOUs

(xiv) Green Card will be issued by the DC concerned to EOU/EPZ units automatically after execution of Legal Undertaking.

(xv) Development Commissioner shall be closely associated with the monitoring committee of Agricultural Export Zones as contained in Chapter 3 of Policy. D.Cs shall ensure publicity of EOU Scheme under their jurisdiction.