SEZ approvals and Letters of Permission extensions conditioned on tax scrutiny, lease limits, continuity and export obligations.
Multiple requests for extension of formal approvals and Letters of Permission (LoP) for SEZs and SEZ units were considered, with extensions granted in several cases and rejections where development activity or recommendations were lacking; co-developer approvals were subject to standard SEZ Act/Rules terms, a maximum lease period generally capped at 30 years (renewable) except in specified State cases, and explicit reservation that lease-related payments are examinable for taxability under the Income Tax Act; revival, transfer and miscellaneous approvals were conditioned on continuity of SEZ activities, eligibility and security clearances, revenue compliance, furnishing of financial/PAN details, and specified monitoring and export obligations.

Amendment to SEZ Board minutes: deletion of attendee reference; LoP renewal denied for dormancy and unmet export obligations.
Amendment to the Board of Approval minutes deletes a reference to a representative being heard and confirms that the unit is dormant, has not discharged prescribed export obligations, and that the Board rejected the request for renewal of the Letter of Permission.

Extension of SEZ approvals and LoPs permitted with strict compliance conditions and disclosure obligations to revenue authorities.
Board granted multiple extensions of validity for formal approvals and Letters of Permission and approved co developer participations and new sector specific SEZ proposals subject to compliance with the SEZ Act and Rules and specified conditions. Change of name, shareholding changes, amalgamations and amendments to authorized operations were approved only upon continuity of SEZ responsibilities, fulfillment of eligibility and security clearances, compliance with revenue and company law consequences, furnishing of financial and PAN details to revenue authorities, and required environmental and safety clearances. Non compliant or inadequately documented requests were rejected or deferred for further inspection.

Co-developer lease period capped, with state-specific exception; approvals subject to tax, compliance and verification rights preserved.
The Board granted time-bound extensions for formal, in-principle and Letter of Permission approvals where land possession and State recommendations met thresholds, and approved multiple co-developer arrangements subject to SEZ Act and Rules, with a general requirement to limit lease tenures to a period not exceeding thirty years (renewable) except for a confined State-specific exception. All co-developer and ownership-change approvals were conditioned on continuity of SEZ obligations, fulfilment of eligibility and security clearances, disclosure to revenue authorities, and preservation of tax assessment rights; cancellations and appeal outcomes were driven by non performance, expired LOAs, arrears or failure to meet Rule-based conditions.

Closure of advance authorisation licences for non receipt of foreign currency payments enforces export payment compliance obligations.
Closure of licences issued under Advance Authorisation is mandated where required payment from a Foreign Currency Account has not been received; implementing offices must follow the enclosed Department of Commerce and trade administration communications to effect licence closure and update records under the export authorisation regime.

Advance Authorisation payments must be made from foreign currency accounts; non compliance attracts liability under FTDR Act.
Advance Authorisation licences under Para 4.16(a) require suppliers to be paid from the unit's foreign currency account where payment is pending; SEZ units are directed to make such payments and warned that failure to do so will attract liability under FTDR Act, 1992.

Foreign Currency Account payment requirement: SEZ units must pay DTA suppliers from FCA to enable Advance Authorisation closure.
Payments for supplies received by SEZ units towards fulfilment of export obligation against Advance Authorisations must be made from the SEZ unit's Foreign Currency Account; Development Commissioners are to instruct SEZ units accordingly so authorisation holders can obtain closure, and non compliance may attract regulatory action under the foreign trade law.

Digitization of SEZ approvals expands online filing for developer and unit permissions, eliminating manual interfaces and requiring compliance reports.
Expansion of the SEZ Online System mandates online submission for additional developer and unit transactions, including land changes, de notification, CST exemption Form I, leasing of processing area space, approval of materials and services, SEZ setup proposals for Board of Approval consideration, issuance of IEC and RCMC, final exit orders, GSP certificates, broad banding, capacity enhancement, diversification or change of activity, and changes in entrepreneur or shareholding. The new processes are to be implemented alongside existing digital processes from the stated effective date, with no manual interface allowed for previously digitized applications and compliance reporting to the Department for review.

LoP validity correction: departmental memorandum amends previously reported extension and shortens the permitted term for SEZ approvals
The Department of Commerce, SEZ Section, by Office Memorandum dated 26 June 2015, corrects Item No. 65.3(vi) of the Board of Approval minutes of 19 May 2015: the extension of the Letter of Permission previously recorded to 8th November, 2016 is amended to 8th November, 2015. The correction is issued with the approval of the Commerce Secretary.

Dual use of SEZ non processing area: prescribed application and conditions govern developer/co developer approval and BOA recommendation.
Developers and Co developers seeking dual use of infrastructure in the Non Processing Area of an SEZ must submit the prescribed application under SEZ Rule 11A, providing developer/co developer identification, SEZ particulars, infrastructure description delineating SEZ use versus dual use, land and built up area, percentage of non processing area, investment and employment estimates, financial documents, a Detailed Project Report, statutory declarations including state NOC and FAR compliance, and supporting evidence; the Development Commissioner will examine demarcation, conformity with guidelines and recommend sanction, conditional sanction, or rejection to the Board of Approval.

SEZ approval extensions continue subject to operational progress and developer compliance with tax and eligibility obligations.
The Board granted time-limited extensions of formal approvals, in-principle approvals and Letters of Permission for numerous SEZ developers and units, often conditioned on demonstrable project progress, state clarifications or condonation of delay. Multiple co-developer proposals were approved subject to SEZ Act and Rules and a recurring requirement that lease periods be reduced to not exceed 30 years (renewable). Change-of-ownership, name-change and merger approvals were conditioned on continuity of SEZ obligations, fulfillment of eligibility and security clearances, submission of full financial details to Revenue/CBDT and preservation of the Assessing Officer's rights to examine taxability.

Self-attestation for SEZ inter-unit transfers permits removal of goods for repair, testing and R&D with undertaking and records.
SEZ units may remove goods to DTA or abroad for repair, replacement, testing, calibration, quality testing and research and development on self attestation, subject to intimation to the Specified Officer and an undertaking to the Authorized Officer for return; units must maintain records of such movements as per SEZ Rules.

Power plant location restriction: operations limited to non processing areas; O&M benefits withdrawn for processing area plants.
Power plants are now permitted only in SEZ Non Processing Areas; existing Processing Area plants must be demarcated as Non Processing and will forfeit O&M fiscal benefits. The 2009 guidelines classify installations as developer/co developer non processing plants (initial setup benefits only), processing area units/captive plants (full Section 26 fiscal benefits and duty free inputs counted to NFE), and single stand alone processing units (Section 26 benefits). Distribution is a licensed activity under the Electricity Act; generation may be licence exempt if statutory standards and definitions are met. Metering, quarterly reporting and duties on processing to DTA supplies apply, with tariffs governed by the Electricity Act.

Guidelines for power generation in SEZs: earlier guidelines withdrawn; prior framework restored for policy and operations.
The Ministry withdraws the 2012 guidelines with immediate effect and restores the Department's 2009 guidelines as the operative policy for power generation, transmission and distribution in Special Economic Zones; the 2009 framework will guide policy and operational decisions and is circulated to Chief Secretaries, SEZ Development Commissioners, the Ministry of Power, the Department of Revenue and other concerned agencies.

SEZ approvals and extensions governed with taxability safeguards and conditional infrastructure permissions to preserve compliance.
Board granted and rejected time-limited extensions of formal approvals and LoPs, approved selected co-developers and new SEZs subject to SEZ Act and Rules, and imposed explicit taxability safeguards: developers/co-developers must maintain separate accounts when required, furnish PAN and jurisdictional assessing officer details to CBDT, and accept Assessing Officer scrutiny of lease rentals, down payments or premiums. The Board approved infrastructure and access permissions on conditions including non-claim of duty benefits, proper accountal, and developer-borne costs, and cancelled numerous formal approvals for lack of progress conditional on certification regarding any SEZ duty/service tax benefits.