CRITERIA FOR AUTOMATIC APPROVAL OF 100% EOUs/EPZs

1. The imported capital goods are not second hand and
-- are financed through foreign equity or
-- constitute not more than 50% of the total value of plant and equipment subject to a ceiling of Rs. 30 mln.

2. The foreign technology agreement,if any entered into by the unit, is restricted to lumpsum payment of Rs. 10 mln. or 8% royalty (net of taxes) over a period of 5 years from the commencement or production.

3. The project undertakes to achieve value addition of at least 20%, unless otherwise specified.

4. The project is located :
-- within an EPZ, and availability of space and conformity with environmental and other standards of the EPZ has been certified by the Development Commissioner, or
-- in an area other than an EPZ for which the locational conditions stipulated by the Department of Industrial Development have been complied with.

5. The product to be manufactured does not require licensing and is not reserved for the public sector.

6. The unit meets the requirements of the customs authorities including :
-- the provisions of the Central Excises and Salt Act, 1944.
-- it is amenable to bonding by the customs.
-- all the manufacturing operations are carried out in the same premises and the proposal does not envisage sending out of the bonded area any raw materials or intermediate products for any other manufacturing or processing activity

7. The conditions relating to DTA sales are adhered to
8. The unit has an annual turnover of at least Rs. 500 mln. if it is for the manufacture of gems and jewellery and is located outside EPZs and other designated area.