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Commerce Minister Extends Export Oriented Unit (EOU) Benefits To Biotech Parks
Section Business & Industry Posted on Sun Sep 05, 2004 at 04:15:39 AM EST
After a gift packed Union Budget the Centre has showered biotech sector with multitude of benefits in the Foreign Trade Policy 2004-09. This apart from creating a conducive environment for investment flow, both from domestic and international investors, would help the biotech industry grappling with generics build up R&D capabilities in order to be at the same level as the IT industry. The 100 per cent FDI through automatic route can drive MNC biotech companies move R&D centre to a low cost destination like India that too when such units would enjoy a crowd of duty/tax benefits. Extending credits at international rates similar to SEZ units would be a major booster for domestic industry which could be at par with international organisations. Companies could up R&D budget by redirecting the surplus from Income Tax savings.
Under the Foreign Trade Policy 2004-09 announced yesterday the Commerce Minister has extended export oriented units (EOU) scheme benefits to Biotech Parks in the country. “The application of biotechnology would pay rich dividends in terms of new products and technologies. To harness this frontier of science, we propose to establish Biotechnology Parks in the country which would get all the facilities of 100 per cent Export Oriented Unit (EOU),” the minister said in his speech. BTPs can avail of all benefits that were so far been bestowed on EOUs/EHTPs/STPs. Biotechnology Parks (BTPs) would be notified by the DGFT on the recommendations of the Department of Biotechnology, states the policy document. In the case of units in the BTP, necessary approval/permission under relevant provisions of this chapter will be granted by designated officer of the DBT. (Click on "Full Story" for more.)
Under the policy, 100 per cent FDI will be permitted for BTPs through Automatic Route similar to SEZ units. BTP units will be exempted from payment of Income Tax as per the provisions of Section 10A & 10B of the IT Act. BTPs will be exempted from industrial licensing for manufacture of items reserved for SSI sector. They can avail credit from an offshore banking unit on the same terms and conditions as extended to units to SEZ. The policy states that export proceeds will be realised within 12 months and BTPs will be allowed to retain 100 per cent of its export earning in the EEFC account. The units will not be required to furnish bank guarantee at the time of import or going for job work in DTA, where the unit has:
From The Express Pharma Pulse - September 01, 2004
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