Lok Sabha Question No. 2757 (UNSTARRED), answered on 2016-03-14
Subject: Export Oriented Units
Ministry: COMMERCE AND INDUSTRY
Asked by: DUSHYANT SINGH, NISHIKANT  DUBEY

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2757 TO BE ANSWERED ON 14 TH  MARCH, 2016

## EXPORT ORIENTED UNITS

## 2757. SHRI DUSHYANT SINGH: SHRI NISHIKANT DUBEY:

Will  the  Minister  of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) the total number of Export Oriented Units (EOUs) set up in the country during the last five years and the current year including those which are functional and non -functional, State/UT -wise;
- (b) whether there has been a gradual decline in the number of functional EOUs since 2009 -10;
- (c) if so, the details thereof along with the reasons therefor and the corrective measures taken by the Government to control this decline;
- (d) whether there is no internal audit mechanism to assist in oversight of the functioning of EOUs;
- (e) if so, the details thereof and the measures taken by the Government to institutionalize such an internal audit system; and
- (f) whether the Government proposes to set up more EOUs in various States including Jharkhand and if so, the details thereof, State -wise?

## ANSWER

## वािणÏ य एवं उɮयोग राÏ य मंत्री ) Įीमती िनमर्ला सीतारमण ( ( èवतंत्र प्रभार ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

(a)    Madam, a statement of State/UT-wise number of Export Oriented Units (EOUs) set up in the country from the year 2010-2011 is at Annex.

(b)   & (c) There has been a decline in the number of functional EOUs from 2485 at the end of the year 2011 to 1977 at the end of the year 2015. The primary reason for declining trend in functional units is discontinuation of Income Tax benefits on the export profits to EOUs from April 2011. Department of Commerce had constituted a Review & Revamp Committee in  2011  for  suggesting  steps  to  make  the  scheme  of  100%  EOUs  more  vibrant  and attractive  to  investors.  Certain  recommendations  of  the  Committee  have  already  been incorporated in the 5 year Foreign Trade Policy announced on 01.04.2015.

(d) & (e) Excise Audit - 2000 is regularly carried out on EOUs by the Central Excise field formations.  CBEC has issued guidelines vide Circular No. 35/2001-Cus dated 15.06.2001 and Circular No. 41/2001-Cus dated 23.07.2001 regarding joint monitoring of EOUs.  Apart from this, a system of internal control and Joint Monitoring has been developed.  Detailed guidelines have been provided for monitoring of EOUs in Appendix 6 F of Hand Book of Procedures under the Foreign Trade Policy 2015-20. Instructions have also been issued to the jurisdictional Development Commissioners for engaging Chartered Accountants for this purpose.

(f) The scheme of 100% EOUs does not envisage setting up of EOUs by the Government. As per the scheme,  the exporters who desire to avail the benefits provided under Chapter 6  of  the  Foreign  Trade  Policy  2015-2020  to  100%  EOUs  and  willing  to  work  under  the bonded environment can apply to the jurisdictional Development Commissioner of SEZ and avail  the  benefits    of  the  100  %  EOU  Scheme  after  fulfilling  all  the  requirements  of  the scheme.

## Annex

State/UT wise Details of EOUs approved/setup from the year 2010-2011onwards.

| Zone   | States            |   Number of Functional/Non- Functional EOUs |
|--------|-------------------|---------------------------------------------|
| CSEZ   | Kerala            |                                          22 |
|        | Karnataka         |                                         109 |
| FASEZ  | West Bengal       |                                          08 |
|        | Bihar             |                                           0 |
|        | Jharkhand         |                                           0 |
|        | Odisha            |                                          01 |
|        | Assam             |                                           0 |
|        | Tripura           |                                           0 |
|        | Mizoram           |                                           0 |
|        | Manipur           |                                           0 |
|        | Meghalaya         |                                           0 |
|        | Nagaland          |                                           0 |
|        | Arunachal Pradesh |                                          01 |
|        | Sikkim            |                                           0 |
| ISEZ   | Madhya Pradesh    |                                          59 |
| KASEZ  | Gujarat           |                                          52 |
| MEPZ   | Tamil Nadu        |                                         117 |
|        | Pondichery        |                                          03 |

|       | A & N Islands        |   00 |
|-------|----------------------|------|
| NSEZ  | Delhi                |   05 |
|       | Haryana              |   14 |
|       | Uttar Pradesh        |   18 |
|       | Punjab               |   01 |
|       | Rajasthan            |   09 |
|       | Himachal Pradesh     |   05 |
|       | Jammu & Kashmir      |   01 |
|       | Chandigarh           |   00 |
|       | Uttrakhand           |   01 |
| SEEPZ | Maharashtra          |   43 |
|       | Goa, Daman & Diu     |   11 |
|       | Dadra & Nagar Haveli |   01 |
| VSEZ  | Andhra Pradesh       |   30 |
|       | Chhatisgarh          |   01 |
|       | Telangana            |   60 |
|       | Yanam                |   00 |

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