Policy framework for EOU units -

See Chapter 6 of Foreign Trade Policy - 2008 and Chapter 6 of Handbook of Foreign Trade Procedures - 2008

And for subsequent years visit the latest policy here and procedure here as and when annonced.

__________

» For setting up a unit in an EOU, three copies of the application in the form given in Appendix -14I-A of the Handbook(Vol.1) may be submitted to the Development Commissioner (DC) of the EOU concerned.
 
 » Proposals for setting up units in EOU other than those requiring industrial Licence may be granted approval by the Unit Approval Committee under the chairmanship of the Development Commissioner within 15 days.
 
 » Proposals for setting up units in EOU requiring Industrial Licence may be granted approval by the Development Commissioner after clearance of the proposal by the EOU Board of Approval and Department of Industrial Policy and Promotion within 45 days.
 
 » Letter of permission (LOP)/Letter of Intent (LOI) issued to EOU units by the Development Commissioner would be construed as a licence for all purposes, including for procurement of raw material and consumables either directly or through canalising agency.
 
 » The LOP/LOI shall specify the items of manufacture/service activity, annual capacity, projected annual export for the first 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.

Export oriented unit approvals: prescribed application, licence equivalent Letter of Permission enabling procurement and conditions on DTA sales. Procedures require submission of the prescribed application to the competent authority; non licence proposals are approved by the local approval committee within a short period, while licence dependent proposals require clearance by the approval board and central industrial policy department within a longer period. The Letter of Permission/Intent constitutes a licence for procurement and other statutory purposes and must specify activity, capacity, projected initial export, Net Foreign Exchange Earnings and any limitations on domestic tariff area sales, with such additional conditions as necessary.