I (Meaning and importance of Exports) Unit Structure

 
8.7.2 BENEFITS/INCENTIVES GIVEN TO 100% EOUs 
(a) 
The EOUS are mainly concentrated in the engineering, 
chemicals, plastics, granites and food processing. Such units 
ae permitted to import raw materials, spare parts, machinery, 
etc, without the payment of import duty. They can also 
procure indigenous capital goods, components and raw 
materials without payment of excise duty and in return must 
produce goods for exports for 10 years. 
 
(b) 
EOUS need not pay excise duty when they use domestic 
raw materials, etc, for the production which are to be 
exported. 
 
(c) 
100% EOUS need not be located in the FTZS. They may be 
located at any place and may be of any size. 
 
(d) 
100% EOUS are given special concessions such as five 
year tax holiday and two years gestation period before 
exporting. 
 
(e) 
EOUS export the entire or at least 75% their production and 
there by contribute in promoting exports. 
 
(f) 
Foreign equity up to 100% is permissible in the case of 
EOUS. 
8.8 SPECIAL ECONOMIC ZONES (SEZ) 
 
8.8.1 MEANING 
 
The concept of special economic zones (SEZS) was 
suggested by the comer and industry minister late Mr. Murasoli 
Maran while introducing third revision to EXIM policy 1997-2002. 
The SEZs are in addition to EPZs and FTZs operating in India. A 
scheme for setting up SEZs in country to promote export was 
announced by the government in the Exim policy announced on 
31
st
March, 2000. The SEZs intend to provide an internationally 
competitive and hassle free environment for export and are 
expected to give a further boost to the country‟s exports. 
The idea of SEZS is borrowed from china where such zones 
are operation efficiently and are contributing nearly 40 percent of 
total exports. The government policy is for the creation of SEZS in 
all parts for export promotion. They are expected to provide an 
internationally competitive and hassle-free environment for exports. 

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The SEZ scheme is expected to give a further boost to country‟s 
exports. The state governments are expected to participate in 
export promotion by starting SEZs in their states. The SEZs can be 
set-up in the public, private joint sector or by state governments.
The government policy is to provide convenient infra-
structure facilities and various incentives to such SEZS so as to 
make them key engines of export growth.