APPENDIX - 14 K
Guidelines on revival/debonding of sick EOU/EPZ Units
Please see Para 6.28 of EXIM Policy & Para 6.28 of this Handbook
(Above Note has been corrected vide
PN No. 16/2002, Dt. 05/06/2002)
To revive units which may have become "sick" and to provide an exit route to those units, who may want to move out of the EOU/EPZ Scheme, the following guidelines are prescribed :-
1.
Revival of operations :
(i) A unit which has been declared sick by the appropriate authority shall submit a revival package through the Development Commissioner concerned to the Board of Approval for consideration and approval.
The Board shall consider the following :
(a) Extension in the period for fulfilment of EP and NFEP for a further period upto a maximum of 5 years at the prevalent norms indicated in Appendix I of the EXIM Policy.
(b) On extension of the period, unutilized raw material and imported/domestically procured capital goods shall be allowed to be carried forward at their original value.
(ii) On grant of extension, the LUT executed by the unit shall be suitably revised.
2
Transfer of sick unit
(i) In case an entity is willing to takeover all the assets and liability of a "sick unit", transfer of such assets and liability as per the dispensation indicated in Part I above shall be considered by the Board of Approvals. An application for such takeover may be submitted through the Development Commissioner concerned to the BOA for approval.
(ii) The sick unit could also transfer the imported/domestically procured capital goods and raw material to another EOU/EPZ/SEZ units. For the buying units, it shall be treated as a domestically sourced goods for the purpose of NFEP/EP.
3.
Utilisation of space
(i) In the event of a unit being granted an extension of period for fulfillment of NFEP/EP as indicated in Part I above, the space provided by the zone administration would continue to be in its possession. The Development Commissioner shall not charge any penal interest payable on rental for the period for which the unit has remained closed upto the date of the new bonding period.
(ii) In event of the unit debonding as indicated at Part II (i) and (ii), the unit shall to be liable to pay all the rental dues as decided by the Development Commissioner. However, if the unit is being taken over by another unit, the liability shall pass on to the unit which is taking over the sick unit, subject to an undertaking being given by the latter. However, no penal interest on rental dues shall be charged for the closure period before take-over.
(iii) All adjudication proceeding under FTDR Act shall remain in abeyance in case of revival/take over of sick unit and approval of it by the Board of Approval.