MINISTER OF THE STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI JAIRAM RAMESH)
(a) & (b) : The following criteria have been laid down for approval of units under
Export Oriented Unit (EOU) scheme, by the Unit Approval Committee (UAC) which consists
of State Government and Central Government representatives :-
(i) Residence proof in respect of individual/partnership firms of all Directors/
Partners. (Passport/ration card/driving licence/voter identity card or any other proof
to the satisfaction of Development Commissioner);
(ii) Income Tax return of all the promoters for the last three years;
(iii) Experience of the promoters;
(iv) Marketing tie-ups;
(v) Inspection of the project site by an Officer;
(vi) A report from other Development Commissioners as to whether any case under
EOU/SEZ Scheme in regard to diversion of goods etc. is pending.
Wherever necessary, these are verified through personal interview with the promoters of
the project. In the event of the promoters being a well-established entity, the procedure
of personal interview can be dispensed with.
(c) As per information available, year wise details of revenue loss due to misuse of EOU
scheme during last three years is as below:
Year Revenue loss (Rupees in Crores)
2003-04 660.75
2004-05 842.49
2005-06 439.90
(d) & (e) : Any misuse by the EOUs result in fiscal penalties and even suspension/
cancellation of the EOU status under the provisions of Foreign Trade (Development
and Regulation) Act, 1992 besides penal action under the provisions of the Central
Excise & Customs Acts. Since before approval of a new unit, report is called by the
UAC from all the Development Commissioners, wherever any such misuse is detected, the
said person cannot obtain new EOU approval anywhere in the country.
