Special Economic Zones governance: Board approves extensions, co-developer status, non-processing area demarcations, and other SEZ administrative actions.
The Board of Approval for Special Economic Zones considered multiple administrative and regulatory proposals, including extensions of approval validity, co-developer approvals, demarcation of non-processing area, partial de-notification, revival of a sick unit, duty-free procurement of a restricted item, revised notification after consolidation of plots, a new SEZ proposal, and one appeal. It granted several one-year extensions, approved co-developer status subject to standard SEZ conditions and tax examination rights, permitted numerous Rule 11B demarcations, recommended partial de-notification, and directed further examination of land-area norms for emerging sector SEZ proposals.

SEZ approvals and de-notification actions updated; extensions, co-developer recognitions, and demarcation directives issued with taxability review directions.
Board of Approval ratified prior minutes and granted extensions of in-principle/formal approvals and LoAs for specified SEZs and units with revised expiry dates. It approved two entities for co-developer status to provide construction, common infrastructure and management services within designated SEZ premises, subject to SEZ Act and Rules and assessing officer review of taxability of lease or premium income; lease periods to follow Department of Commerce instruction. The Board authorized demarcation of specified built-up areas as non-processing under Rule 11B and recommended de-notifications and regulatory amendment where minimum area norms were implicated.

Special Economic Zone approvals: extensions, item permissions, land de notification and procedural compliance ordered for operational oversight.
The Board regularised and extended validity of Letters of Approval for SEZ units, directed DCs to investigate state level delays affecting LoAs, approved specified restricted refrigerants for IT/ITES SEZ operations and authorised export of certain sandalwood products subject to export only conditions and Customs checks, recommended partial de notification of SEZ land, deferred a revival and transfer proposal pending verification of dues and court approved revival alignment, permitted conversion of processing built up area to non processing under Rule 11B, and accepted surrender of a Formal Approval subject to No Objection.

KYC and surveillance obligations enhanced for FTWZ and warehousing units, with mandatory ERP systems and risk based audits enforced.
Guidelines require stringent KYC for FTWZ and warehousing units and their clients, mandatory pre transaction submission of client KYC to the Development Commissioner, CCTV coverage with one year data retention and DC access, and tamper proof ERP/SAP systems accessible to DCs. Manual customs entries are prohibited; SEZ Online and ICEGATE modules must be used; transfers between FTWZs are restricted except by UAC approval; DCs must perform risk based physical verifications and audits, share information on valuation abuses, monitor high risk commodities, and cancel LoAs for sub letting violations.

SEZ approvals: board authorises extensions, co developer recognitions, de notifications and conditional import and security directions for units and developers
The Board directed adoption of a DGEP/DoC checklist for Rule 11B implementation and required DCs to submit checklist outcomes; it authorised time limited extensions and regularisation of certain LoAs, directed a Show Cause Notice where a unit's investment and business plan were inadequate, approved co developer statuses and built up expansions subject to SEZ Act terms and Assessing Officer tax examination rights, recommended multiple partial and full de notifications, permitted specified processing floors to be converted to Non Processing Areas under Rule 11B, and granted conditional import/export and industrial licence permissions with prescribed security and export compliance conditions.

Demarcation of SEZ processing areas as non processing areas permitted, conditional on submission of finalized checklist and compliance.
The Board recorded approvals, de notifications, co developer grants and cancellations, and extensions of approvals under the SEZ Rules. Demarcations of processing built up area to non processing area were permitted conditionally, requiring submission and adherence to a finalized checklist issued by the Department of Commerce/Department of Revenue. Co developer approvals were subject to standard SEZ Act and Rules terms and assessment rights for taxation of lease-related income; several de notification recommendations and LoA validity extensions were also made.

Duty refund certification for non SEZ IT/ITES units in IT/ITES zones required before Board approval by authorities
The Specified Officer must certify, countersigned by the Development Commissioner, that the developer has refunded the duty as per the provisions of Rule 11B of SEZ Rules, 2006 and the Departmental Instruction, and this certificate must accompany proposals forwarded under Rule 11B for Board of Approval consideration.

Solar panels as capital goods: SEZ developers may install for captive common-area supply under existing power guidelines.
Requests from SEZ developers and co-developers for procurement and installation of solar power panels to generate captive electricity for common areas should be considered as capital goods and assessed by Development Commissioners in accordance with Para 1(i) of the Power Guidelines.

Conversion of SEZ processing area into non processing area approved, subject to duty refund certification and No Dues compliance.
The Board approved multiple procedural actions under the SEZ regulatory framework, including ratification of prior minutes with additional documentation, one year extensions of formal approvals and LoAs, recommended partial de notifications, and numerous approvals to convert processing area to Non Processing Area under Rule 11B subject to No Dues Certificates and prescribed duty refund certification by the Specified Officer and Development Commissioner. Innovative proposals and airport based SEZs were deferred pending rule amendments or inter ministerial consultation, and co developer approvals were granted subject to standard SEZ Act/Rules conditions and taxability examination by the Assessing Officer.

Demarcation of non-processing area requires full repayment of originally availed tax benefits before permission and subjects units to DTA laws.
Rule 11B permits BOA to demarcate existing built-up floor space in IT/ITES SEZs as Non-Processing Area only after full repayment, without interest, of the originally availed tax benefits attributable to that space (including construction and basement costs and benefits on common facilities). Chartered Engineer certification must identify the built-up area; repayment calculations rely on financial books and originally availed benefits. Units in NPA are limited to IT/ITES activities, treated as DTA entities with no SEZ privileges, access control is required, and O&M tax benefits for common infrastructure used by NPA units are not available.

SEZ area conversion: Board approved processing-to-non-processing demarcations with duty repayment and procedural safeguards.
The Board approved selective one-year extensions of developer formal approvals, rejected an LoA extension where no construction or investment occurred, authorised partial de-notifications and area decreases, and approved transfers of Formal Approval and Co-Developer status subject to SEZ Act and Rules, DoC lease-period instructions, and Assessing Officer review of taxability. It remanded several appeals for rehearing with directions to afford parties opportunity to be heard. For Rule 11B conversions, the Board approved demarcations where full repayment of duty/GST benefits and No Dues Certificates were furnished, deferred others pending revenue concurrence, and required undertakings to remit any differential duty/tax if later determined.

Processing-to-nonprocessing conversion under Rule 11B requires full repayment of duties and tax-benefit reconciliation.
Board extended validity of developer formal approvals and unit LoAs, approved FTWZ formal approval, granted multiple Co-developer statuses and area adjustments, and sanctioned demarcation of processing to non-processing areas under Rule 11B subject to full repayment of proportionate customs, excise, GST and other levies, repayment of tax benefits attributable to common infrastructure, and undertakings to remit any differential duties or tax benefits if determined; Assessing Officer retained rights to examine taxability and lease periods to follow DoC instructions.