TaxTMI 
TaxTMI 
Guidelines for Development of Special Economic Zones (SEZs)
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....nced 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 confidence in investors and signal the Government's commitment to a stable SEZ policy regime, a comprehensive Special Economic Zone legislation was enacted June 2005, which came into effect on 10th February, 2006. The response to the Scheme has been overwhelming. In short span of about three years since SEZ Act and Rules were notified in February, 2006, formal approvals have been granted fo....
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....; 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 environmental sustainability. (v) As far as possible SEZs shall be self-contained with respect to basic facilities and requirements. 3 (vi) &nbs....
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....mes for infrastructure to be implemented in a phased manner. (vii) Planning of SEZs may adopt different kind of development low-rise and lowdensity 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 nonregulated area. For a SEZ falling within the regulated area, the State Government may constitute an Empowered Committ....
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....stors. C. Housing: Five per cent of the total area should 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 2007. Developer should rent out these houses to the employees of units. The units could take these houses on long-term lease for renting out to their employees. The housing facilities created in the nonprocessing area could also be allowed to be used by persons who are working for establishment relating to SEZ developers, units and or are users of infrastructure facilities creat....
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....servation 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 should be designed based on the soil conditions, ie. Water absorption capacity of the soil, area of open spaces and other non-residential uses. The storm water drainage system shall be designed keeping in view the historical rainfall intensity of the area. (iv). Sewerage: Adequate and appropriate sewerage system should be put in place by the SEZ developer in accordance with the developmental plan. Sewerage treatment plant facilities may be provided for the SEZ as a whole. The prevailing wind d....
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.... Regional Development: SEZs being centres for economic activity, will have the influence of developing township around it. State Government therefore should look at the development of the area around the Zone in a planned manner in particular for SEZs around which there is no commercial or industrial activity. Developers will work with the State Government to achieve the same objective. 5. Priority to Small Scale Units in SEZ: Setting up of "Small Scale Units" as defined under the Micro, Small and Medium Enterprises Development Act, 2006, in the SEZs, should be encouraged. Accordingly the SEZ developers should make a conscious attempt to bring small scale units in the SEZs. Development Commissioners of the Central Governme....