Lok Sabha Question No. 2606 (UNSTARRED), answered on 2016-03-14
Subject: New Policy for SEZs
Ministry: COMMERCE AND INDUSTRY
Asked by: RODMAL NAGAR

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

## LOK SABHA UNSTARRED QUESTION NO. 2606

## TO BE ANSWERED ON 14 TH  MARCH, 2016

## NEW POLICY FOR SEZS

## 2606. SHRI NAGAR RODMAL:

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

- (a) whether the Government has adopted a new policy for Special Economic Zones (SEZs);
- (b) if so, the details thereof along with its salient features;
- (c) whether this policy has encouraged the small SEZs in all the States/UTs of the country; and
- (d) if so, the details thereof along with the extent to which it is likely to be beneficial?

## ANSWER

वािणÏ य एवं उɮयोग राÏ य मंत्री ) Įीमती िनमर्ला सीतारमण ( ( èवतंत्र प्रभार ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a) and (b): The  Special  Economic  Zones  (SEZs)  policy  was  launched  in  April,  2000.
- The Special Economic Zones Act, 2005, was passed by Parliament in May, 2005 which received Presidential assent on the 23 rd of June, 2005.  The SEZs Rules, 2006 came into effect on 10 th February, 2006. The salient features of the SEZ scheme are:-
- (i) A designated duty free enclave to be treated as foreign territory  only  for  trade
- operations and duties and tariffs;
- (ii) No licence required for import;
- (iii) Manufacturing or service activities allowed;
- (iv) SEZ units to be positive net foreign exchange earner within three years;
- (v) Domestic sales subject to full customs duty and import policy in force;
- (vi) Full freedom for subcontracting;
- (vii)  No routine examination by customs authorities of export/import cargo.

(c) and (d): In order to address the problem of aggregating large tracts of uncultivable land for setting up SEZs, the minimum land area requirements for setting up of SEZ in various  categories  has  been  reduced  by  amending  the  SEZs  Rules,  2006  vide notification G.S.R. 540(E) dated 12 th August, 2013 as indicated below:

| Type                                                                                   | Area                                                                                                                                                                              | Area for Special States/UTs*                                                                                                                                                      |
|----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Multi- product                                                                         | 500 hectares                                                                                                                                                                      | 100 hectares                                                                                                                                                                      |
| One or more services                                                                   | 50 hectares                                                                                                                                                                       | 50 hectares                                                                                                                                                                       |
| Sector specific                                                                        | 50 hectares                                                                                                                                                                       | 25 hectares                                                                                                                                                                       |
| Handicrafts                                                                            | 10 hectares                                                                                                                                                                       | 10 hectares                                                                                                                                                                       |
| Information Technology(IT) /Information Technology Enabled Services(ITES)              | minimum built up area requirement: 1. category 'A' cities - one lakh square metres 2. category 'B' cities - 50,000 square metres 3. other cities/locations - 25,000 square meters | minimum built up area requirement: 1. category 'A' cities - one lakh square metres 2. category 'B' cities - 50,000 square metres 3. other cities/locations - 25,000 square meters |
| Bio-technology and Non-conventional energy (including solar energy equipments or cell) | 10 hectares and minimum built up area as per SEZs Rules                                                                                                                           | 10 hectares and minimum built up area as per SEZs Rules                                                                                                                           |
| Gems and Jewellery                                                                     | 10 hectares and minimum built up area as per SEZs Rules                                                                                                                           | 10 hectares and minimum built up area as per SEZs Rules                                                                                                                           |
| Electronics hardware and software (including ITES)                                     | 10 hectares and minimum built up area as per SEZs Rules                                                                                                                           | 10 hectares and minimum built up area as per SEZs Rules                                                                                                                           |
| Agro based food processing SEZs                                                        | 10 hectares and minimum built up area as per SEZs Rules                                                                                                                           | 10 hectares and minimum built up area as per SEZs Rules                                                                                                                           |
| Free Trade and Warehousing Zone                                                        | 40 hectares and minimum built up area as per SEZs Rules                                                                                                                           | 40 hectares and minimum built up area as per SEZs Rules                                                                                                                           |

*Special  States/UTs  are  Union  Territories  and  the  States  of  Assam,  Meghalaya,  Nagaland,  Arunachal Pradesh, Mizoram, Manipur, Tripura, Himachal Pradesh, Uttarakhand, Sikkim, Jammu & Kashmir and Goa.

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