Lok Sabha Question No. 2893 (UNSTARRED), answered on 2017-03-20
Subject: Validity Period of SEZs
Ministry: COMMERCE AND INDUSTRY
Asked by: BHARTRUHARI MAHTAB

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2893 TO BE ANSWERED ON 20 th  MARCH, 2017

## VALIDITY PERIOD OF SEZS

## 2893. SHRI BHARTRUHARI MAHTAB:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) the  criterion  being  followed  by  the  Government  to  extend  the  validity  period  of Special  Economic Zones (SEZs) along with the number of SEZs given extension across the country during the last three years and the current year, State-wise;
- (b) whether the cases of deviation from the said criterion in extension of validity period of SEZs have come to the notice of the Government during the said period; and
- (c) if  so,  the  details  thereof,  Statewise  along  with  the  reasons  therefor  and  the  action taken/being taken by the Government in such cases so far?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

(a): In  terms  of  Rule  6(2)(a)  of  the  Special  Economic  Zones  Rules,  2006,  the  Letter  of Approval granted to a SEZ developer is valid for a period of three years within which time effective  steps  are  to  be  taken  by  the  developer  to  implement  the  approved  proposal.  The Board  of  Approval  (BoA)  under  Department  of  Commerce  may,  on  an  application  by  the developer,  extend  the  validity  period  of  the  letter  of  approval.  No  specific  criteria  for allowing extension of validity of Letter of Approval is laid down in the SEZ Rules, 2006. However, the Board of Approvals considers factors like incremental investment made by the developer, physical progress in implementing the project and delays in obtaining  clearances from statutory bodies and environmental clearance etc. while extending validity of Letter of Approval.    Since  the  financial  year  2012-2013  and  the  current  financial  year  (upto  14 th March,  2017),  BoA  has  granted  more  time  to  144  SEZ  developers  across  the  country  to complete their projects. The State-wise details are at Annexure.

(b) & (c):

In view of (a) above, question does not arise.

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## Annexure

| State-wise number of SEZs granted extension of validity period (July, 2012 to March, 2017)   | State-wise number of SEZs granted extension of validity period (July, 2012 to March, 2017)   |
|----------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|
| State/UT                                                                                     | Approvals                                                                                    |
| Gujarat                                                                                      | 10                                                                                           |
| Haryana                                                                                      | 13                                                                                           |
| Jharkhand                                                                                    | 1                                                                                            |
| Karnataka                                                                                    | 13                                                                                           |
| Kerala                                                                                       | 12                                                                                           |
| Madhya Pradesh                                                                               | 8                                                                                            |
| Maharashtra                                                                                  | 26                                                                                           |
| Nagaland                                                                                     | 2                                                                                            |
| Andhra Pradesh (including Telangana)                                                         | 18                                                                                           |
| Odisha                                                                                       | 8                                                                                            |
| Tamil Nadu                                                                                   | 21                                                                                           |
| Uttar Pradesh                                                                                | 5                                                                                            |
| West Bengal                                                                                  | 5                                                                                            |
| Rajasthan                                                                                    | 2                                                                                            |
| Manipur                                                                                      | 1                                                                                            |
| GRAND TOTAL                                                                                  | 144                                                                                          |