Proposals for setting up of new SEZs - MHA clearance
DEPARTMENT of Commerce has instructed the Development Commissioners Special Economic Zones that since the requirement of National Security Clearance is to be assessed by the Department, before issuance of formal approval for setting up of new SEZs, the proposals may be examined and indicated whether the proposal would require National Security Clearance from MHA before sending the same to the Department for consideration of the Board of Approval (BoA).
Country Sensitivity: India's national security concerns include threats emanating from outside country. Hence, investment proposals originating from certain countries of concern (contextual) and tax havens require higher due diligence and caution during the process of vetting.
Geographical sensitivity: for the preservation of territorial integrity, serious threats emanate from ware and cross border activities including terrorism, subversion and sabotage.
Consequently, special care and higher due diligence needs to be exercised while evaluating proposals in the proximity of the LoC, LAC and the international borders from the point of view of locational integrity.
Proposals of foreign investment from countries of concern in the following areas will require more due diligence in threat assessment: