100% Export Oriented Units / Export Processing Zones / Special Economic Zones
5.1  100 per cent Export Oriented Units (EOUs) and units in the Export Processing Zones (EPZs)/Special Economic Zones(SEZs), enjoy a package of incentives and facilities, which include duty free imports of all types of capital goods, raw material, and consumables in addition to tax holidays against export.
  Automatic Approval
5.2  The Development Commissioners (DCs) of Export Processing Zones (EPZs) /Free Trade Zones (FTZS)/Special Economic Zones (SEZs) accord automatic approval to projects where
(a) Activity proposed does not attract compulsory licensing or falls in the services sector except IT enabled services;
(b) Location is in conformity with the prescribed parameters;
(c) Units undertake to achieve exports and value addition norms as prescribed in the Export and Import Policy in force;
(d) Unit is amenable to bonding by customs autorities; and
(e) Unit has projected the minimum export turnover, as specified in the Handbook of Procedures for Export and Import.
  All proposals for FDI/NRI/OCB investments in EOU/EPZ units qualify for approval through automatic route subject to the sectoral norms. Proposals not covered under the sutomatic route would be considered and approved by FIPB. [For procedure for automatic approval, refer to para 10.1 & 10.5].

5.3

  Conversion of existing Domestic Tariff Area (DTA) units into EOU is also permitted under automatic route, if the DTA unit satisfies the parameters mentioned above and there is no outstanding export obligation under any other Export Oriented scheme of the Government of India.

5.4 

FDI upto100% is allowed through the automatic route for all manufacturing activities in Special Economic Zones (SEZs), except for the following activities :
 
  1. arms and ammunition, explosives and allied items of defence equipments defence aircraft and warships;
  2. atomic sustances;
  3. narcotics and psychotropic substances and hazardous chemicals;
  4. distillation and brewing of alcoholic drinks; and
  5. cigarettes/cigars and manufactured tobacco substitutes.

      For services, norms as notified, would be applicable
  Government Approval

5.5

  All proposals which do not meet any or all of the parameters for automatic approval will  be considered and approved by the Board of Approval of EOU/EPZ/SEZ set up in the Department of Commerce.