(1) The Central Government shall, within a period of thirty days of the communication received by it under clause (a) or clause

(b) of Sub-section (9) of Section 3 of the Act grant following approvals :—

(a) formal approval in the cases where land is in possession of the developer in Form-B to the person or the State Government concerned or in Form-C, if the approval is for providing infrastructural facilities in the Special Economic Zone, incorporating additional conditions, if any, specified by the Board while approving the proposal;

(b) in-principle approval in other cases in Form-B 1 to the person or the State Government concerned, incorporating additional conditions, if any specified by the Board while approving the proposal.

(2) (a) The letter of approval of a Developer granted under clause (a) of sub-rule (1) shall be valid for a period of three years within which time, effective steps shall be taken by the Developer to implement the approved proposal:

 

Provided that the Board may, on an application by the developer or co-developer, for reasons to be recorded in writing, extend

the validity period for a further period not exceeding two years.

(b) The letter of approval of a Developer granted under clause (b) of sub-rule (1) shall be valid for a period of one year within which time, the Developer shall submit suitable proposal for formal approval in Form “A” as prescribed under the provisions of rule 3 :

Provided that the Board may, on an application by the developer or co-developer for reasons to be recorded in writing, extend

the validity period for a further period, not exceeding two years, upon a request made in writing by the Developer or Codeveloper