SEZ Rules amended
Processing area – 35% may be relaxed up to 25%: As per the Rules, at least twenty five per cent of the area shall be earmarked for developing processing area. Now this is changed to thirty-five per cent which may be relaxed up to twenty-five per cent by the Central Government on recommendations of the Board for the reasons to be recorded in writing – Rule 5(2) (a), third Proviso
SEZ for specific sector- Built up area:- 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 bio-technology, non-conventional energy, including solar energy equipments/cell, or gem and jewellery sectors, the area shall be ten hectares or more. Now a new condition is added that they should have a minimum built up area of
(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 square meters in case of a Special Economic Zone proposed to be set up exclusively for the gems and jewellery sector.
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: - Rule 5(2) (b), second Proviso
SEZ for Free Trade and warehousing: A new proviso added that in a ‘stand alone’ Free and Warehousing Zone at least fifty per cent of the area shall be earmarked for developing processing area
IT Infrastructure requirements: A new Rule 5A inserted which requires the following facilities to be ensured in an IT related SEZ.
(a) twenty-four hours uninterrupted power supply at stable frequency in the Zone;
(b) reliable connectivity for uninterrupted and secure data transmission;
(c) provision for central air-conditioning system; and
(d) a ready to use, furnished plug and pay facility for end users.
Non Processing area – no leasing for business and social purposes. As per the existing rules, “The Developer may allot the land in the non-processing area for business and social purposes such as educational institutions, hospitals, hotels, recreation and entertainment facilities, residential and business complexes, provided that infrastructure for business or social purposes in the Special Economic Zone, as may be approved by the Board, shall be eligible for exemptions, concessions and drawback.
Now this is changed to
No vacant land in the non-processing area shall be leased for business and social purposes such as educational institutions, hospitals, hotels, recreation and entertainment facilities, residential and business complexes, to any person except a co-developer approved by the Board :
Provided that the developer or co-developer may lease the completed infrastructure along with the vacant land appurtenant thereto for such purposes:
Provided further that infrastructure for business or social purposes in the Special Economic Zone, as may be approved by the Board, shall be eligible for exemptions, concessions and drawback.
‘Trading’ redefined. Trading is now defined as to mean import for the purposes of re-export.