Para 6.2
- Document type
- Policy
- Dated
- Category
- Policy
Automatic Approval
- 6.2
- The Directors of STPs in respect of STP proposals; and the Designated Officers in respect of EHTP proposals accord automatic approval if -
(a) the items do not attract compulsory licensing; (b) the location is in conformity with the prescribed parameters; (c) the export obligation laid down in the respective EHTP scheme or STP scheme is fulfilled; (d) the CIF value of the imported capital goods required for the project does not exceed Rs. 100 million; (e) foreign technology proposals envisaged, if any, do not involve lump sum know how fee exceeding US$ 2 million, 8 per cent royalty on export and 5 per cent royalty on domestic sales (all net of taxes) over a period of 5 years from the date of commencement of commercial production; (f) the exports are to general currency/hard currency area; (g) the unit is amenable to bonding by the Customs, and all the manufacturing operations are carried out in the same premises and the proposal does not envisage sending out of the bonded area any raw material or intermediate products for any other manufacturing or processing activity. All proposals for FDI/NRI/OCB investments in EHTP/STP units are eligible for approval through AUtomatic Route subject to parameters listed under para 2.8[For procedure to obtain Automatic Approval, refe r to
para 11.2].
FDI upto100% is allowed through the automatic route for all manufacturing activities in Special Economic Zones (SEZs), except for the following activities :
- arms and ammunition, explosives and allied items of defence equipments defence aircraft and warships;
- atomic sustances;
- narcotics and psychotropic substances and hazardous chemicals;
- distillation and brewing of alcoholic drinks; and
- cigarettes/cigars and manufactured tobacco substitutes.
- arms and ammunition, explosives and allied items of defence equipments defence aircraft and warships;