EOU basically function under the administrative control of the Development
Commissioner of SEZ.
MINIMUM INVESTMENT CRITERION: The project must have a minimum investment of
Rs.1 crore in plant and machinery. This condition doesn’t apply to STP, EHTP, BTP.
Further, EOU involved in handicrafts, agriculture, animal husbandry, handmade
jewellery, etc. does not have any minimum investment criterion.
EOUs Obligations: The EOUs are required to achieve the minimum NFEP and
minimum EP as per the provisions of EXIM policy which vary from time to time and
sector to sector.
Location: EOUs can be set anywhere in the country, but where the population is
more than one million such as Bangalore, it should be set atleast 25 km away from
the Standard Urban Area limits of that city, unless it is to be located in an area
designated as an “Industrial Area”.