1.   The imported capital goods are not second 

       hand and

      

       *    Are financed through foreign equity or

       *    Constitute not more than 50% of the 

            total  value  of plant  and  equipment 

            subject to a ceiling of Rs. 30 mln.

  

  2.   The foreign technology agreement,if any 

       entered  into by the unit,  is   restricted 

       to  lumpsum payment of Rs. 10 mln.  or   8% 

       royalty  (net of taxes) over a period of  5 

       years from the commencement  or production.

  

  3.   The project undertakes to achieve value 

       addition of at least 20%, unless  otherwise 

       specified.

  

  4.   The project is located :

  

       *    Within an EPZ, and availability of 

            space     and     conformity      with 

            environmental  and other standards  of 

            the  EPZ  has been  certified  by  the 

            Development Commissioner, or

  

       *    In an area other than an EPZ for which 

            the  locational conditions  stipulated 

            by   the  Department   of   Industrial 

            Development have been complied with

  

  5.   The product to be manufactured does not 

       require licensing and  is not reserved  for 

       the public sector.

  

  6.   The  unit meets the requirements of the 

       customs  authorities  including :

       

       *    The provisions of the Central Excises 

            and Salt Act, 1944.

       *    It is amenable to bonding by the 

            customs.

       *    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 

            materials  or  intermediate   products 

            for   any   other   manufacturing   or 

            processing activity.

  

  7.   The conditions relating to DTA sales are 

       adhered to

  

  8.   The unit has an annual turnover of at least 

       Rs.  500 mln. if it is for the  manufacture 

       of  gems  and  jewellery  and  is   located 

       outside EPZs and other designated area.