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.