Net Foreign Exchange Earnings (NFE)

7.12.1

SEZ unit shall be a positive Net Foreign Exchange Earner. Net Foreign Exchange Earnings (NFE) shall be calculated cumulatively for a period of five years from the commencement of production according to the following formula:

Positive NFE = A-B >0

Where:

A : is the FOB value of exports by the SEZ 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 during the first five year period or any other charges. "Inputs" mean raw materials, intermediates, components, consumables, parts and packing materials.