No SEZ Additional Bond-cum-Legal Undertaking in Normal Operations

· Additional BLUT should not be sought in a routine manner as long as the unit/ developer operates at the same scale of activities as initially envisaged.

[MoC Letter No. K.43013(18)/2/2022-SEZ dated 15 February, 2023]

Subject: Challenges faced by trade w.r.t monitoring of BLUT and requirement for additional BLUT.

I am directed to refer to representations received from EPCES and SEEPZ SEZ on the above mentioned subject and to draw attention to the provisions of Rule 22(1)(iv)(d) of SEZ Rules, 2006, wherein it is expressly stipulated that there shall be no debit and credit in the BLUT. Besides, the BLUT amount shall be monitored quarterly or yearly on the basis of Quarterly Progress Report or Annual Progress Report submitted by the Developer or Unit, as the case may be and in case of any shortfall in the SLUT amount, a fresh or additional Bond-cum-Legal Undertaking shall be furnished.

2. In view of above, it is clarified that the need for additional SLUT would arise only in cases where the scale of operations have increased from the initial levels for which the SLUT was submitted and additional BLUT should not be sought in a routine manner as long as the unit/ developer operates at the same scale of activities as initially envisaged.

3. This issues with the approval of the competent authority.