Approval as Co-developer
Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs.The main objectives of the SEZ Scheme is generation of additional economic activity, promotion of exports of goods and services, promotion of investment from domestic and foreign sources, creation of employment opportunities along with the development of infrastructure facilities.The infrastructure facilities of the SEZs are normally provided by the Developer. However, the developer may bring in a Co-developer for the purpose of developing infrastructure by entering into an agreement with the co-developer. The application for co-developer status has to be filed with the Development Commissioner of the SEZ who will place the application for consideration of the Board of Approvals . Approval applicability/trigger Applicable if one wants to be a Co-Developer i.e., entity co-operated by the developer for setting up infrastructural facilities in the approved SEZ. He would need to enter into an agreement with the Developer. Requirements for establishment of a Special Economic Zone.- (1) The Board may approve as such or modify and approve a proposal for establishment of a Special Economic Zone, in accordance with the provisions of sub-section (8) of section 3, subject to the requirements of minimum area of land and other terms and conditions indicated in sub-rule (2). (2) The requirements of minimum area of land for a class or classes of Special Economic Zone in terms of sub-section (8) of section 3 shall be the following, namely:- (a) A Special Economic Zone for multi product shall have a contiguous area of one thousand hectares or more: Provided that such Special Economic Zone established exclusively for services may have a contiguous area of one hundred hectares or more: Provided further that in case a Special Economic Zone is proposed to be set up in Assam, Meghalaya, Nagaland, Arunachal Pradesh, Mizoram, Manipur, Tripura, Himachal Pradesh, Uttaranchal, Sikkim, Jammu and Kashmir, Goa or in a Union territory, the area shall be two hundred hectares or more: Provided also that as least thirty-five per cent of the area shall be earmarked for developing the processing area, which may be relaxed upto twenty-five per cent by the Central Government on recommendations of the Board for the reasons to be recorded in writing; [amended vide notification dated 10.8.2006] Provided also that the fulfillment of the requirement of the contiguous area shall be considered and decided by the Board on a case to case basis on merits; (b) A Special Economic Zone for a specific sector or in a port or airport, shall have a contiguous area of one hundred hectares or more: Provided that in case a Special Economic Zone is proposed to be set up exclusively for electronics hardware and software, including information technology enabled services, the area shall be ten hectares or more with a minimum built up processing area of one lakh square meters: Provided further that in case a Special Economic Zone is proposed to be set up exclusively for bio-technology, non-conventional energy, including solar energy equipments/cell, or gem and jewellery sectors, the area shall be ten hectares or more with a minimum built up area as under : (i) forty thousand square meters in case of a Special Economic Zone proposed to be set up exclusively for bio-technology and non-conventional energy sectors, including solar energy equipment/cells but excluding a Special Economic Zone set up for non-conventional energy production and manufacturing; (ii) fifty thousand squaro meters in case of a Special Economic Zone proposed to be set up exclusively for the gems and jewellery sector. [amended vide notification dated 10.8.2006] Provided also that in case a Special Economic Zone for a specific sector is proposed to be set up in Assam, Meghalaya, Nagaland, Arunachal Pradesh, Mizoram, Manipur, Tripura, Himachal Pradesh, Uttaranchal, Sikkim, Jammu and Kashmir, Goa or in a Union territory, the area shall be fifty hectares or more for the Special Economic Zones not covered under the first and second proviso: Provided also that at least fifty per cent. of the area shall be earmarked for developing processing area; (c) Special Economic Zone for Free Trade and Warehousing shall have an area of forty hectares or more with a built up area of not less than one lakh square meters: Provided that in a stand alone Free and Warehousing Zone at least fifty per cent of the area shall be earmarked for developing processing area : Provided further that a Free Trade and Warehousing Zone may also be set up as part of a Special Economic Zone for multi-product; [amended vide notification dated 10.8.2006] provided also that in a Special Economic Zone for a specific sector, Free Trade and Warehousing Zone may be permitted with no minimum area requirement but subject to the condition that the maximum area of such Free Trade and Warehousing Zone shall not exceed twenty per cent. of the processing area.[amended vide notification dated 10.8.2006] (3) The requirements of the minimum area of land for the Special Economic Zones, – (a) which had been, before the commencement of these rules ,- (i) recommended by the Board of Approval constituted by the notification of the Government of India, in the Ministry of Commerce and Industry (Department of Commerce) Number 14/1/2001-EPZ dated the 7th August, 2001;and (ii) approved by the Central Government; (b) which had acquired or taken possession of the land required for setting up of the Special Economic Zones before the commencement of these rules; and (c) which are situated in any of the States mentioned under column (2) of the Annexure II to these rules, shall, for each sector under column (3) of the Annexure II, be such as mentioned in the corresponding entries under column (4) against each such sector situated in the State mentioned under column (2) of the said Annexure II. (4) The Developer or Co-Developer shall have at least twenty-six percent of the equity in the entity proposing to create business, residential or recreational facilities in a Special Economic Zone in case such development is proposed
Approval as Co-developer Read More »