SEZ in india

1. Planning Legislation

2. Introduction
 Special Economic Zone (SEZ) is defined as "a specifically
delineated duty free enclave and shall be deemed to be foreign
territory for the purposes of trade operations and duties and tariffs".
 SEZs
 an engine for economic growth
 supported by quality infrastructure
 complemented by an attractive financial package
 with the minimum possible regulations.
 Government of India have notified Special Economic Zones
(SEZs) Act 2005 and notified Special Economic Zone Rules 2006
with a view to develop infrastructure facilities for export.

3. Establishment of special economic zone
 A Special Economic Zone may be established under this Act, either
jointly or severally by the Central Government, State Government,
or any person for manufacture of goods or rendering services or for
both or as a Free Trade and Warehousing Zone.
 Any person, who intends to set up a Special Economic Zone, may,
after identifying the area, make a proposal to the State Government
concerned for the purpose of setting up the Special Economic
Zone.

4. Functions under this Act, shall be guided by…
 generation of additional economic activity
 promotion of exports of goods and services;
 promotion of investment from domestic and foreign
sources;
 creation of employment opportunities;
 development of infrastructure facilities; and
 maintenance of sovereignty and integrity of India, the
security of the State and friendly relations with foreign
States.

5. Processing and non-processing areas
 The areas falling within the Special Economic Zones
may be demarcated by the Central Government or any
authority specified by it as-
 (a) the processing area for setting up Units for
activities, being the manufacture of goods, or rendering
services; or
 (b) the area exclusively for trading or warehousing
purposes; or
 (c) the non-processing areas for activities other than
those specified under clause (a) or clause (b).

6. Exemption from taxes, duties or cess
 Any goods or services exported out of, or imported into,
or procured from the Domestic Tariff Area by,
 (i) a Unit in a Special Economic Zone; or
 (ii) a Developer;
shall, subject to such terms, conditions and limitations,
as may be prescribed, be exempt from the payment of
taxes, duties or cess under all enactments specified in
the First Schedule.

7. SEZs Typology
 SEZs can be categorized on basis of sector, function or
location and required to have processing as well as non-
processing area.

9. Development Norms for Non Processing Areas in SEZ
Development guidelines – Multi Product SEZ
 FAR – 1
 Total Floor Space – 50,00,000 sqmts
 Floor Space utilization
 Land Utilization
Activity Percentage of floor space
Residential 50
Commercial 25
Facilities 25
Activity Percentage of floor space
Residential Commercial
Facilities etc.
55
Open spaces 20
Circulation 25

10. Development Norms for Non Processing Areas in SEZ
Development guidelines – Sector Specific SEZ
 FAR – 1
 Total Floor Space – 5,00,000 sqmts
 Floor Space utilization
 Land Utilization
Activity Percentage of floor space
Residential 50
Commercial 25
Facilities 25
Activity Percentage of floor space
Residential Commercial
Facilities etc.
55
Open spaces 20
Circulation 25

11. Development Norms for Non Processing Areas in SEZ
Development guidelines – IT/ITES, Biotechnology, Gems and
Jewellery SEZ
 FAR – 1
 Total Floor Space – 50,000 sqmts
 Floor Space utilization
 Land Utilization
Activity Percentage of floor space Area in Sqmt
Residential 60 250000
Commercial 15 125000
Facilities 25 125000
Activity Percentage of floor space
Residential Commercial
Facilities etc.
75
Open spaces 10
Circulation 15

12. Key challenges in the SEZs program
 Compensation for acquisition shall be on the basis of market prices .
 Give share of acquired land in the developed area to the owners.
 Provision of employment for Landless labourers .
 Development of SEZs needs to be integrated with existing Master Plans
and Regional Plans.
 There is need to develop regional/sub regional plan around the SEZ
areas.