9.37 Apart from the original powers under the Policy and Hand Book, the DCs have been delegated with the following powers in respect of EOU / EPZ units :

(a) Approval of units:

Applications for setting up of units in EPZ or as EOU outside the EPZ, other than proposals for setting up of unit in the services sector (except software and IT enabled services, trading or any other service activity as may be delegated by BOA) and conversion of sick / closed DTA unit into EOU, satisfying the following conditions, may be approved by DC.

(The above paragraph has been amended vide Public Notice No.37(RE-00)/1997-2002 dated the 9th October,2000)

(i) the item of manufacture does not require an IL under the Industries (Development & Regulation) Act, 1951;

(ii) location of the unit is either in the EPZ (for which availability of space and conformity with environment and other standards of EPZ have been confirmed) or in an area other than the EPZ for which the locational conditions stipulated by the Department of Industrial Policy & Promotion have been complied with;

(iii) the unit undertakes to achieve the minimum NFEP and EP as stipulated in Appendix 1 of the Policy;

(iv) foreign exchange required for import of capital goods (net of taxes) is not more than US $ 20 million;

(v) foreign technology agreement, if any, is as per the RBI guidelines; and

(vi) conversion of existing DTA unit into EOU conforming to para 9.3 above.

(vii) Conversion of EOU to STP / EHTP and vice versa as per procedure laid down in paragraph 9.3 above.

(viii) EOUs on leased premises provided the lease agreement is for a minimum period of 5 years.

(b) Powers for post approval matters :

(i) Import of additional capital goods: to allow import of additional capitals goods subject to the condition that the total value of imported capital goods is not more than US $ 20 million or 10% of the approved value of capital goods even if it exceeds US $ 20 million.

(The above paragraph has been amended vide Public Notice No.37(RE-00)/1997-2002 dated the 9th October,2000)

(ii) Currency Fluctuation: to allow increase in the value of capital goods in terms of Indian Rupees, on account of foreign exchange rate fluctuations;

(iii) Enhancement of production capacity: to permit capacity enhancement without any limit in case of de-licensed industries only, provided the value of additional imported capital goods, if any, and the value of CG already allowed do not exceed US $ 20 million;

(iv) Broad banding / diversification: to permit broad-banding / diversification provided that requirement of additional imported capital goods, if any, is within the limits indicated at (iii) above

(v) Change in name: to authorise change in name of the company or the implementing agency and change from a company to another provided the new implementing agency / company undertakes to take over the assets and liabilities of the existing unit.

1) Deleted

2) Deleted.

(vi) Change of location / expansion: To permit change of location from the place mentioned in the LOP / LOI to another and/or include additional location, under the same Customs Circle, provided that:

(a) no change in other terms and conditions of the approval is envisaged.

(b) the new location is within the territorial jurisdiction of the DC.

(c) the new location is at a warehousing station declared by the custom authorities; and

(d) other locational, zoning, land-use or environmental conditions are also complied with.

(vii) Extension of validity of LOP / LOI: To extend the validity period of LOP / LOI by three years, beyond the initial validity period of the LOP / LOI (except in case where there is a restriction on initial period of approval, like setting up oil refinery projects).

The Development Commissioner may also cancel LOP / LOI / IL wherever warranted.

(viii) Change in NFEP / EP: To approve proposals for revision of NFEP / EP upward or downward upto to the minimum NFEP / EP as prescribed in Appendix 1 of the EXIM Policy and also subject to the provisions of paragraph 9.21 of this Handbook. If such revision is sought before completion of the approved five year period, the revised norms shall be applicable for the remaining bond period only.

(ix) Import of Office equipment: To permit import / procure from indigenous sources office equipment not exceeding 20% of the total value of capital goods installed, provided the value of imported capital goods and office equipment does not exceed US $ 20 million.

(x) Merger of two or more EOU / EPZ units: to permit merger of two or more units into one unit provided the units fall within the jurisdiction of the same DC and the same Commissioner of Central Excise and Customs.

(xi) Exports to Russian Federation against repayment of State Credit: To permit exports to Russian Federation against payment in Indian Rupees against repayment of State Credit / Escrow Rupee Account of the buyer subject to currency balancing, i.e hard currency outgo on import of raw materials, components and consumables, used in the goods exported, against rupee payment is at least made up by equivalent export to the hard currency area. The currency balancing condition shall be fulfilled over a period of one year and a letter of undertaking obtained from the exporting unit that in the event of its failure to achieve currency balancing by the end of the year, it shall be liable to pay applicable duties on the imported inputs used in the manufacture of the goods so exported.

Permission may be granted by the Development Commissioner to export to RPA on quarterly basis in advance subject to currency balancing on the basis of projections given by the unit.

(xii) Import of DG sets and space Development Commissioners may permit import / procurement of DG sets without any limitation in regard to the capacity of DG sets for meeting the power requirement of the unit. For import / procurement of spares for DG sets, the procedure as applicable to import / curement of spares for other capital goods shall apply.

(xiii) Development Commissioner has been delegated with powers of adjudication under Section 13 read with Section 11 of Foreign Trade (Development & Regulation) Act, 1992 in respect of EOU / EPZ / SEZ units as mentioned in Gazette Notification No. SO. 194(E) dated 6.3.2000.

(xiv) Eviction of EPZ unit under Public Premises Eviction Act: In case the rent on the plot / built up premises allotted to EPZ units is in arrears or if the plot / shed is not utilised for the purpose for which the same has been allotted, the Development Commissioner shall have the power to get the premises vacated under the Public Premises Eviction Act.

(xv) Development Commissioner has been authorised to do valuation of exports declared on SOFTEX form by the units located in Export Processing Zones as per RBI A.D. (M.A Series) Circular No. 35 dated 25.11.1999.

(xvi) Development Commissioner has been authorised to issue eligibility certificates for grant of employment visa to low level foreign technicians to be engaged by EOU / EPZ / SEZ units as per Ministry of Home Affairs" letter No. 25022/7/99-F.1 dated 20.9.1999.