STP EHTP Scheme
|Complete STP (Software Technology Park)/ EHTP (Electronic Hardware Technology Park) Scheme Information|
This section contains all STP scheme benefits and the full STP/ EHTP scheme Document
Government of India has declared computer software as one of the extreme focus area for growth of exports. Therefore, Govt. of India announced a special scheme to provide conducive environment as well as to promote software exports called "The Software Technology Park (STP) Scheme".
STP Scheme is a 100% EOU Scheme for the development and export of computer software using data communication link or in the form of physical media including export of professional services. STP can be a virtual software development unit or can be infrastructural complex set-up for providing necessary support for the STP units.
STPI provides 100% Software Exporting units with single window clearance and fiscal support to enable smooth operations and facilitate industry growth.
For encouraging exports of Electronic Hardware items including hard disk drives, computers, television, etc., such parks have been developed by the Ministry of Communications & Information Technology. An Electronic Hardware Technology Park (EHTP) may be an individual unit by itself or a unit located in an area designated as EHTP Complex. As in the case of STP Scheme, the EHTP Scheme is also administered by the Ministry of Electronics & Information Technology (MeitY).
Incentive Package for Electronic Hardware announced in the Foreign Trade Policy 2002-07
An EHTP can also be set up by the Central Government, State Government, public or private sector undertakings or any combination of them.
Obligations and Benefits
The entire production of an EHTP is to be exported to hard currency areas except sales in the Domestic Tariff Areas, subject to the limits set down.
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.
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 amendment on 02 March 1993.
Import of Goods
Notification 52/2003--Customs dated 31March 2003.
Notification No. 22/2003-CE & 23/2003-CE dated 31March 2003.
Notification No. 91/93-central excise dated 2 July 1993.