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The Software Technology Park (STP) Scheme
Scheme Benefits & Highlights
Electronic Hardware Technology Park (EHTP) Scheme
  • Units undertaking to export their entire production of goods and services may be set up under the Electronic Hardware Technology Park (EHTP) Scheme. Such units may be engaged in manufacture and services.
  • Commensurate with the policy to give a special thrust to export of electronic hardware, such units would be encouraged to be set up under the aforementioned export oriented scheme.
Scheme Benefits & Highlights
  • EHTP unit may import free of duty all types of goods, including capital goods as defined in the EXIM Policy, required by it for manufacture, services, production and processing or in connection therewith.
  • The units shall also be permitted to import goods, including capital goods, free of cost or on loan from clients required for the approved activity
  • EHTP units may procure goods required by them for manufacture, services, production and processing or in connection therewith, duty free, from bonded warehouses in the DTA set up under the Exim Policy.
  • EHTP units may sell Goods/Services in DTA up to 50% of FOB value of exports, subject to fulfillment of positive NFE as per the policy & payment of applicable duties.
  • Positive Net Foreign Exchange Earnings against Export Earnings to be achieved over a period of five years.
Minimum Export Obligation

As per the Import-Export Policy, 2002-2007, EOU/EHTP/STP Unit shall be a net foreign exchange earner. Net Foreign Exchange (NFE) earning shall be calculated cumulatively for a period of five years from the commencement of production, according to the formula as under:

Positive NFE= A-B >0

A: FOB value of exports

B: Sum total of CG imported+value of payments made in foreign exchange


The Directors of STPs in respect of STP proposals; and the Designated Officers in respect of EHTP proposals accord automatic approval if - (a) the items do not attract compulsory licensing; (b) the location is in conformity with the prescribed parameters; (c) the export obligation laid down in the respective EHTP scheme is fulfilled; (d) the unit is amenable to bonding by the Customs, and 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 material or intermediate products for any other manufacturing or processing activity. All proposals for FDI/NRI/OCB investments in EHTP/STP units are eligible for approval through Automatic Route.

Government Approval

All proposals which do not meet any or all of the parameters for automatic approval need to be considered and approved by the Government. Also, Government approval for FDI/NRI/OCB investments under EHTP/ STP need to be obtained through the FIPB.

EHTP Scheme Notifications

Notification No. 42(N-8)92-97 dated 14 September 1992 issued by Ministry of Commerce.

Notification issued by Ministry of Industry dated 22 February 1992 and ammendment on 02 March 1993.