Government has approved the proposal for setting up of IT/ITES Special Economic Zones in many parts of the Country. As on date, the Board of Approval (BoA) has approved 259 proposals for setting up of SEZ relating to Information Technology/Information Technology Enabled Services (IT/ITES)/ Electronic Hardware sectors SEZs in many parts of the Country.

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 may, on an application by the developer, extend the validity period of the letter of approval. SEZ developers have sought extension of validity period of the letter of approval granted to them for the execution of their projects for various reasons including adverse business climate due to global recession, delay in approvals from statutory State Government bodies, delay in environmental clearance, lack of demand for space in SEZs, unstable fiscal incentive regime for SEZs etc. During the last four years and current financial year (upto 15th July, 2016), extension of time have been granted to 139 developers of SEZ including IT/ITES Sector across the country to complete their projects.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.

Validity of SEZ letters of approval is time limited but may be extended, allowing developers relief for implementation delays. Letters of approval for IT/ITES SEZ developers are valid for three years, within which developers must take effective steps to implement approved proposals; the Board of Approval may, on application by the developer, extend the validity period. Extensions have been sought and granted for reasons including adverse business climate, delays in statutory and environmental clearances, lack of demand for space, and instability in the fiscal incentive regime.