Letter of Permission/Letter of Intent and Legal Undertaking

6.6

(a) On approval, a Letter of Permission (LoP) / Letter of Intent (LoI) shall be issued by Development Commissioner/ designated officer to EOU / EHTP / STP / BTP unit. LoP/ LoI shall have an initial validity of 3 years, by which time unit should have commenced production. Its validity may be extended further up to 3 years by competent authority. However, proposals for extension beyond six years shall be considered in exceptional circumstances, on a case-to-case basis by BoA. Once unit commences production, LoP / LoI issued shall be valid for a period of 5 years for its activities. This period may be extended further by DC for a period of 5 years at a time.

(b) LoP / LoI issued to EOU / EHTP / STP / BTP units by concerned authority subject to compliance of provision in para 6.2 above, would be construed as an Authorisation for all purposes.

(c) Unit shall execute a LUT with DC concerned. Failure to ensure positive NFE or to abide by any of the terms and conditions of LoP / LoI / IL / LUT shall render the unit liable to penal action under provisions of the FT (D&R) Act and Rules and Orders made thereunder, without prejudice to action under any other law / rules and cancellation or revocation of LoP / LoI / IL.

Investment Criteria

(d) Only projects having a minimum investment of Rs.1 Crore in Plant & Machinery shall be considered for establishment as EOUs . This shall, however, not apply to existing units and units in EHTP / STP / BTP, Handicrafts / Agriculture / Floriculture / Aquaculture / Animal Husbandry / Information Technology, Services, Brass Hardware and Handmade jewellery sectors. Board of Approval (BoA) may also allow establishment of EOUs with a lower investment criteria.