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SSI items: EOUs exempted from industrial licence

Our Bureau

NEW DELHI, March 30

THE Government has decided to exempt export oriented units (EOUs) and units in export processing zones (EPZs) from obtaining industrial licence if they manufacture items reserved under the small scale industries (SSI) list.

An official statement from the Department of Industrial Policy and Promotion of the Ministry of Commerce & Industry said the exemption would be available to the units even if they had a foreign equity component of over 24 per cent.

Accordingly, such units would not be required to obtain approval of the Government to bring in foreign direct investment as long as they were not covered by any other condition already laid down in this regard.

As per the existing policy, medium or large scale EOUs/EPZs set up for manufacturing items reserved for small scale sector were required to obtain industrial licence. While such a licence is granted with an obligation to export at least 50 per cent of th e production, EOUs/EPZs were in any case under an obligation to export 66 per cent of their production.

The statement said, ``Upon debonding, such non-SSI units will not produce items reserved for SSI without undertaking to export 50 per cent of such items manufactured''.