Introduction

A HEOU can be set up at any place of the entrepreneur's choice.The units are eligible for the incentives provided by the Govt. of India under HEOU Scheme and additional incentives offered by State / Union Territory Governments to attract new industries. The scheme allows flexibility to the entrepreneur to locate the unit in the most advantageous place.

2. Development Commissioner, MEPZ deals with HEOU's located in Tamil Nadu, Pondicherry and Andaman & Nicobar Islands.

3. Exports from the HEOUs associated with DC, MEPZ have grown steeply. The figures are as follows:

4. To set up a HEOU, an application has to be made to:

The Secretariat of Industrial Approvals Ministry of Industrial Development, Udyog Bhawan, New Delhi - 110 011

The application form can be obtained from MEPZ also.

5. After obtaining approval from the Secretariat of Industrial Approvals, the unit may approach the Development Commissioner for subsequent clearances.

6. Incentives

Incentives offered by the Government of India & Govt. of Tamil Nadu are the same as those extended to units inside MEPZ.

7. Incentives offered by Pondicherry Administration:

• Exemption from payment of PGST/CST for five years in the case of Pondicherry & Yanam regions and ten years in the case of Karaikal & Mahe regions.
• Reduced rate of CST @ 1% for additional period subject to a total period of 19 years for SSI units only.
• Power Subsidy at decreasing rates upto 5 years.
• Reduced tax for purchase or raw materials.

8.Incentives offered by Andaman & Nicobar Administration:

• Subsidy on installation of D.G.Set,land development and installation of Water harvesting equipment.
• Interest free loan for procurement of D.G.Set/In-house water harvesting equipment.
• Mainland Island Transport Subsidy scheme.
• Inter Island Transport Subsidy scheme.
• Island Capital Investment Subsidy scheme.
• Waiver of Fisheries Royalty in case of 100% Export Oriented Units

9. Obligations :

Obligations of HEOU are the same as those of Units inside inside MEPZ.

10. At present, there are 282 HEOU's under the jurisdiction of Development Commissioner, MEPZ. Of these, 171 units are in production. Exports of the units in 1996-97 amounted to Rs.17634 million (US $ 503 mn).

11. The units are providing employment to over 16000 persons of whom over 5000 are women.

12. Industry-wise analysis of exports from the units during 96-97 is as follows:-

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