The following form basis of evaluation :

• The unit has obtained all necessary clearances whether statutory or administrative, e.g. drug license under drug control order, NOC from Pollution Control Board, if required etc.
• Unit does not violate any location restrictions in force, at the time of evaluation.
• Value of plant and machinery is within prescribed limits.
• Unit is not owned, controlled or subsidiary of any other industrial undertaking as per notification.
• It crosses the investment limits.
• It starts manufacturing any new item or items that require an industrial license or other kind of statutory license.
• Does not satisfy the condition of being owned, controlled or being a subsidiary of any other industrial undertaking.