Facilities

1. Rent: The units set up in the EPZs will be charged lease rent on industrial plots/ standard design factory (SDF) buildings/sheds for the first three years, at the following rates
(i) For Plots: The lease rent will be 25% of the applicable rate for the first year, 50% for the second year and 75% for the third year if production had commenced in the first year or the second year. Full rent will be payable in the third year if production had not commenced by the end of the second year;
(ii) For SDF buildings/sheds: The lease rent will be 50% of the applicable rates for the first year and 60% for the second year if production had commenced in the first year. The lease rent will be 75% of the applicable rates for the third year if production had commenced in the first year. Full rent will be payable if production had not commenced by the end of the first year; Units located in Visakhapatnam and Falta EPZs will be eligible for lease rent on industrial plots and SDF buildings/sheds as applicable in the third year, subject to commencement of production as indicated above, during the fourth and fifth years also.

2. Tax Holiday: EOU/ EPZ/ EHTP/ STP Units will be exempted from payment of corporate income tax for a block of five years in the first eight years of operation.

3. FOB value of export of an EOU/EPZ/EHTP/STP unit can be clubbed with FOB value of export of its parent company in the DTA for the purpose of according Export House, Trading House, Star Trading House or Super Star Trading House status for the latter

4. 100% Foreign Equity: Foreign equity upto 100% is permissible in the case of EOU/EPZ/EHTP/STP units.

5. The EOU/EPZ units will be entitled to the benefits including grant of special import licence. In addition, EOU/EPZ units, except telecommunication and electronics units, which achieve more than 25% of the stipulated export performance, would be eligible for additional Special Import Licence of 2% of the f.o.b value of such exports, in accordance with the procedure specified in this behalf.

6. Software units may, in addition, also be allowed to use the computer system for training purpose (including commercial training) subject to the condition that no computer terminal shall be installed outside the bonded premises for the purpose.