TaxTMI 
TaxTMI 
GUIDELINES FOR DEVELOPMENT OF SPECIAL ECONOMIC ZONES (SEZs) - draft guidelines
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....rs faithfully Sd/- (R.K.Pandey) Under Secretary to the Government of India GUIDELINES FOR DEVELOPMENT OF SPECIAL ECONOMIC ZONES (SEZs) 1. BACKGROUND: India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla in 1965. With a view to overcome the shortcomings experienced in the EPZ format, a Special Economic Zones (SEZs) Policy was announced in April 2000. The policy intended to make SEZs an engine for economic growth. SEZs in India functioned from 1.11.2000 to 09.02.2006 under the provisions of the Foreign Trade Policy and fiscal incentives were made effective through the provisions of relevant statutes. To instill confidenc....
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....ll be applicable for acquisition of land for SEZ also. However, while identifying the location for setting up of Special Economic Zones, the promoter may keep in view the following aspects: (i) As far as possible, SEZs may be located outside an urban agglomeration/municipal limit. (ii) Sufficient land and water resources for the population envisaged in the SEZs should be available.. (iii) Cultivable land should be considered only if adequate quantum of other land is not available. First preference should be for acquisition of waste and barren land, followed by single crop land and double crop land necessary to meet the contiguity requirements. (iv) Site shall have potential for development as a self-contained entity along with enviro....
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....ty development or high rise, medium density or high-rise and high-density urban form depending on the availability of land requirement of the operating units (viii) Developers of the SEZs would strive to address environmental aspects as prescribed by law, planned green areas, ground water recharging areas and disaster mitigation aspects. 3.2 Role of State Government: SEZs may be located in a regulated or any non-regulated area. For a SEZ falling within the regulated area, the State Government may constitute an Empowered Committee under the Chairmanship of Chief Secretary and consisting of representatives from various Ministries/Departments to prepare the guidelines for the development of Special Economic Zone with regard to land usage,....
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.... development an and create adequate external infrastructure for the SEZs on a time bound basis. (ii) Water Supply: There should be planning for adequate provision for water supply to meet both residential and nonresidential demand of water. Best practices should be adopted for conservation and recycling of water. The Zone should be adequate facilities for rain water harvesting. If water is drawn in bulk from an existing water supply system, the storage reservoir may suitably be sited. (iii) Drainage: The drainage system shall be designed based on the soil conditions, ie., Water absorption capacity of the soil, area of pen spaces and other non-residential uses. The storm water drainage system shall be designed keeping in view the histori....
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....onnectivity to provide state-of-the-art high speed communication link for audio and video to the users in the zone. There should be a video conferencing facility in the office of the Developer and the DC in the Zone which should be operational for use by the DC for reviews as well as for meeting with the State Government Departments/Central Government Departments as well as investors. (viii) Housing: Five per cent of the total area must be used for constructing low cost housing and dormitories in all SEZs of a size of 100 hectares or more. In case of a SEZ of a size of less than 100 hectares, developers should provide low cost housing/dormitories to the employees depending upon the need of the SEZ as per the National Urban Housing Policy ....