7.7

(a) For setting up a unit in an SEZ, three copies of the application in the form given in Appendix-14 A of the Handbook (Vol. I) may be submitted to the Development Commissioner (DC) of the SEZ concerned.

(b) Proposals for setting up units in SEZ other than those requiring industrial licence may be granted approval by the Development Commissioner within 15 days as per the procedure indicated in Appendix 14 B

(c) Proposals for setting up units in SEZ requiring industrial licence and conversion of EOU into SEZ unit may be granted approval by the Development Commissioner after clearance of the proposal by the SEZ Board of Approval and Department of Industrial Policy and Promotion within 45 days

(d) Letter of Permission (LOP)/Letter of Intent (LOI) issued to SEZ units by the Development Commissioner shall be valid for a period of 3 years only and would be construed as a licence for all purposes, including for procurement of raw material and consumables either directly or through state trading enterprises.

(e) Each LOP/LOI shall have separate ear-marked premises and shall specify the items of manufacture/service activity, annual capacity, projected annual export for the first five years in dollar terms, Net Foreign Exchange Earnings (NFE), limitations, if any, regarding sale of finished goods, by-products and rejects in the DTA and such other matter as may be necessary and also impose such conditions as may be required

(f) In case of any change in approved activity or undertaking any new activity by SEZ units, the Development Commissioner shall issue amended LOP within six days on receiving intimation from the unit.

(g) Standard format for LOP/LOI for SEZ units is given in Appendix 14 C of the Handbook (Vol.I).

(h) On completion of five years approval period, it shall be open to the unit to continue under the scheme or opt out of the scheme. Where the unit opts to continues, the DC concerned may extend the approval.