In-principle approval for SEZ proposals requires formal application, statutory and environmental compliance, and proof of land rights. Grant of in-principle approval for an SEZ is subject to submission of a formal Form A application with proof of land possession/leasehold rights, an updated project report and prescribed enclosures to the Director (SEZ). The developer must hold the identified area by ownership or long-term lease on the date of application, obtain all statutory and environmental approvals, provide for rehabilitation of displaced persons, comply with local planning and labour laws, follow external borrowing guidelines for project funding, secure board approval for proposed activities, and may seek a limited extension with justification.