Press Information Bureau

Government of India

Ministry of Commerce & Industry

16-May-2012 15:43 IST

SEZs Approved and Notified in North East

Two SEZs have been formally approved in the State of Nagaland out of which one stands notified. The SEZ has not become operational.

In terms of Rule 6 of the SEZ Rules, validity of approval is for a period of three years within which time effective steps are to be taken by the developer to implement the approved proposal. On a request received from the developer, the Board of Approval can extend the validity period. The SEZs are under obligation to achieve positive Net Foreign Exchange (NFE) earnings to be calculated cumulatively for a period of 5 years from the commencement of production, failing which the units shall be liable for penal action under the provisions of the Foreign Trade (Development and Regulation) Act, 1992. However no export targets are set for Special Economic Zones (SEZs).

Development Commissioner conducts monitoring of all SEZ Units and Developer in terms of SEZ Act, 2005 and Rules.

This information was given by the Minister of State for Commerce and Industry, Shri Jyotiraditya M. Scindia in a written reply in the Rajya Sabha today.

DS/GK

Net Foreign Exchange obligation requires SEZ units to achieve cumulative positive NFE, or face penal action. Two SEZs in Nagaland have approval with one notified but not operational. Under Rule 6, approval is valid for three years subject to implementation steps and possible extension by the Board of Approval. SEZ units and developers must achieve Net Foreign Exchange (NFE) earnings cumulatively for five years from production commencement; failure to meet the NFE obligation attracts penal action under the Foreign Trade (Development and Regulation) Act, 1992. The Development Commissioner monitors SEZ units and developers per the SEZ Act, 2005 and Rules.