Interpretation Required

In case of expansion/ modernization the additional investment as above must result in atleast 33% of additional production beyond

• 2/3 of installed capacity prior to expansion/modernization or
• maximum production achieved during last three years prior to start of the expansion / modernization,

whichever is higher.

this can be understood with this example:

installed capacity before expansion= 75000 units.

installed capacity after expansion= 20000 units.

production achieved during last three years prior to start of expansion: 40000, 42000, 47800

sol: the required additional production should be atleast 33% of the higher of followings

• 2/3 of installd capacity before expansion = 75000*2/3= 50000, or
• maximum production acheived during last three years... 47800.

so requied additional production = 50000 * 33% = 16500 units
.

the required total production = 50000+16500 = 66500 units.