Recommendations of the Committee on Review and Revamp of EOU Scheme regd.

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....ke them complementary to each other and aligning the EOUs to make them more globally competitive. 2. The recommendations submitted by the Committee were subsequently examined in consultation with line ministries. Based on such consultation, the following measures are taken to implement the accepted recommendations: Validity of the period of Letter of Permission (LOP) issued to EOU: LoP issued to an EOU will have an initial validity for a period of 2 years to enable the Unit to construct the plant and install the machinery. The next extension of one year may be given by the DC for valid reasons to be recorded in writing. Subsequent extension of one year may be given by the UAC subject to condition that two-thirds of activities includin....

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....een decided that sharing of facilities among EOUs may be considered by the UAC on case-to-case basis and the recommendations be sent to the BoA for final approval. While accepting such proposals, the NFE obligations of the Units shall not be altered. However, sharing of facilities between EOIJs and SEZs Units should not be permitted. Inter-Unit transfer (IUT) of goods & services : In order to facilitate a group of EoUs which sources inputs centrally to obtain bulk discount, reduce cost of transportation and other logistics cost and to maintain effective supply chain, IUT of goods and services will be permitted on a case to case basis by the UAC. Further, the procedure for Inter-Unit Transfer (IIJT) of finished goods will be clarified ....