New EOUs Require Rs. 1 Crore Investment; Exceptions for Tech Parks & Agriculture; Updated Bond Regulations Apply

The establishment of Export Oriented Units (EOUs) requires a minimum investment of Rs. 1 Crore in building, plant, and machinery, except for specific sectors like technology parks and agriculture. EOUs are approved by a Unit Approval Committee, which includes the Development Commissioner and the Jurisdictional Commissioner of Customs & Central Excise. Applications are submitted in a prescribed form and may require Board of Approval clearance. Upon approval, a Letter of Permission is issued, followed by the execution of a legal undertaking and a B-17 bond. The bond has been updated to align with current regulations, while existing EOUs continue with the previous bond version.