THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)
(a): The details of EOUs presently functional in the country, State/UT-wise are furnished in Annex-I.
The objectives of EOU Scheme are as follows:
i. To boost exports and earn foreign Exchange.
ii. To attract foreign investment and latest technology into the country.
iii. To generate employment.
iv. To upgrade skill and create a source of skilled man-power.
v. To develop backward area.
vi. To create backward and forward linkage by way of sourcing of raw material from and supply of finished goods to DTA.
The incentives/concessions provided by Government to them are as follows:
i. Exemption from payment of Customs Duty and Central Excise Duties on goods imported/procured from DTA.
ii. Reimbursement of Central Sales Tax (CST) on goods manufactured in India.
iii. Reimbursement of duty paid on fuel procured from Domestic Oil Companies.
iv. Reimbursement of additional duty of excise levied on fuel under the Finance Acts would also be admissible.
(b) : Exports made by these units for the year 2013-14 amounted to Rs. 82072.71 Cr. i.e. 4.3% of the total exports of the country in the said year. However, targets are not fixed separately for EOUs.
(c): Yes Madam, the number of proposals received as well as approved by the Government for such units during 2014-15, State/UT-wise are as per Annex-II.
(d): Receipt of applications for setting up of EOUs and their processing is a continuous process, and the same is done as per the provisions of the Foreign Trade Policy and other applicable laws. At present, there are only two proposals pending from Tamilnadu and Uttar Pradesh which relate to manufacture of defence products which require industrial license.
(e): No, Madam.
(f): To boost exports by EOUs, various incentives are being provided by the Government under Chapter 6 of Foreign Trade Policy in addition to the Central Customs and Excise Act, Rules and Regulations. These may be broadly listed as under:
(i) Supplies by DTA manufacturer are eligible for deemed export benefits under Chapter 8 of Foreign Trade Policy.
(ii) Central Value Added Tax (CENVAT) on service tax paid.
(iii) DTA sale (including advance DTA Sale) upto 50% of F.O.B. value of physical Exports permitted on payment of concessional rate of duty.
(iv) FDI upto 100% permitted as per the guidelines of Department of Industrial Policy and Promotion.
There is a mechanism to monitor and prevent the misuse of the concession granted to the EOUs which is implemented through a joint control by the Ministry of Commerce (represented by the Development Commissioner) and the Ministry of Finance (represented by the Commissioner, Central Excise, Customs & Service Tax). There is statutory framework to monitor and prevent misuse of the EOU scheme through legal provisions made under the provisions of Foreign Trade (Development & Regulation) Act 1992, Customs Act 1962, Central Excise Act 1944 and Rules made thereunder. In the event that any EOU found violating any norm such as non/short fulfillment of export obligation, excess and inadmissible imports irregular and unauthorized DTA sales, excess reimbursement of CST, drawback on DTA sales, non-realization of export proceeds, irregular de-bonding, non-receipt of re-warehousing certificates, etc. duty exemptions are withdrawn and necessary recoveries are made after following due process of law in addition to imposition of penalties etc. as per provisions of Foreign Trade (Development & Regulation) Act, 1992, Customs Act 1962, Central Excise Act 1944 and Rules made there under.
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Annex-I
The State/UT-wise breakup of number of functional Export Oriented Units is as under:
State/UTs Units State/UTs Units State/UTs Units State/UTs Units
A & N Island 3 Goa, Daman & Diu 35 Maharashtra 225 Sikkim 0
Andhra Pradesh 80 Gujarat 203 Manipur 0 Tamil Nadu 407
Arunachal Pradesh 0 Haryana 67 Meghalaya 1 Telangana 171
Assam 0 Himachal Pradesh 4 Mizoram 1 Tripura 0
Bihar 1 Jammu & Kashmir 3 Nagaland 0 Uttar Pradesh 58
Chandigarh 3 Jharkhand 2 Orissa 10 Uttrakhand 3
Chhattisgarh 1 Karnataka 446 Pondicherry 13 West Bengal 55
Dadra & Nagar Haveli 19 Kerala 77 Punjab 11 Total 1986
Delhi 18 Madhya Pradesh 10 Rajasthan 59
Annex-II
The details of number of proposals received as well as approved by the Government since 2014-15 is as under:
Zone States 2014-15
Received Approved
CSEZ Kerala 3 3
Karanataka 22 20
FASEZ West Bengal 3 0
Bihar 0 0
Jharkhand 0 0
Orissa 0 0
Assam 0 0
Tripura 0 0
Mizoram 0 0
Manipur 0 0
Meghalaya 0 0
Nagaland 0 0
Arunachal Pradesh 0 0
Sikkim 0 0
ISEZ Madhya Pradesh 0 1
KASEZ Gujarat 14 10
MSEZ Tamil Nadu 22 20
Pondichery 0 0
A & N Island 0 0
NSEZ Delhi 0 0
Haryana 2 2
Uttar Pradesh 6 2
Punjab 2 1
Rajasthan 1 0
Himachal Pradesh 0 0
Jammu & Kashmir 0 0
Chandigarh 0 0
Uttrakhand 0 0
SEEPZ Maharashtra 13 7
Goa,Daman & Diu 0 1
Dadra&Nagar Haveli 1 0
VSEZ Andhra Pradesh 9 8
Chhatisgarh 0 0
Telangana 12 10
Yanam 0 0
Total
110 85
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