Ongoing review and reform, as necessary, of Government policy and procedure is inherent to Public Policy. The Government, on the basis of inputs/suggestions received from stakeholders on the policy and operational framework of the SEZ Scheme, periodically reviews the policy and operational framework of SEZs and takes necessary measures so as to facilitate speedy and effective implementation of SEZ policy.  Whenever, SEZ policy is reviewed, efforts are made to maintain a level playing field for Domestic Tariff Area industries vis-a-vis SEZ units/Developers.

The following initiatives have been taken in recent years for implementation of the SEZ policy in the country and resolve the issues therein:

i.    Minimum Land Area requirement for setting up of new SEZs has been reduced to 50% for Multi-product and Sector-specific SEZs.

ii.   Sectoral broad-banding has been introduced to encompass similar / related areas under the same Sector.

iii.  A new sector 'agro-based food processing' sector has been introduced to encourage agro-based industries in SEZs.

iv.  Dual use of facilities like Social & Commercial infrastructure by SEZs and non-SEZs entities has been allowed  in order to make SEZ operations more viable.

v.   Online processing of various activities relating to SEZ Developers and Units has been introduced for improving ease of doing business.

 This information was given by the Commerce and Industry Minister Smt. NirmalaSitharaman in a written reply in Lok Sabha today.

SEZ policy reform enhances implementation by reducing land thresholds, broad banding sectors, and enabling shared infrastructure. Review of the Special Economic Zone policy introduced measures to maintain a level playing field while improving implementation: reduction of the minimum land area requirement to half for multi product and sector specific SEZs; sectoral broad banding to group related activities; creation of an agro based food processing sector; permission for dual use of social and commercial infrastructure by SEZ and non SEZ entities; and introduction of online processing for developer and unit activities to enhance operational viability and ease of doing business.