Any private / public / joint sector or State Government or its agencies can set up Special Economic Zone (SEZ). Special Economic Zone can be implemented on Public-Private Partnership model also.
15 copies of application, indicating name and address of the applicant, status of the promoter along with a project report covering the following particulars may be submitted to the Chief Secretary of the State:
·Location of the proposed Zone with details of existing infrastructure or that proposed to be established
·Area, distance from the nearest seaport / airport / rail / road head etc.
·Financial details, including proposed investment, mode of financing & project viability.
·Details of foreign equity and repatriation of dividends etc., if any
·Whether the Zone allows only specific industries or will be a multi-product Zone.
The State Government shall forward it, along with their commitment on the following to the Department of Commerce, Government of India:
·Area incorporated in the proposed SEZ is free from environmental restrictions.
·Water, electricity and other services would be provided as required.
·Units would be given full exemption in electricity duty and tax on sale of electricity for self generated and purchased power.
·Allow generation, transmission and distribution of power within SEZ.
·Exempt from State sales tax, octroi, mandi tax, turnover tax and any other duty / cess or levies on the supply of goods from Domestic Tariff Area to SEZ units.
·For units inside the Zone, the powers under the Industrial Disputes Act and other related labour Acts would be delegated to the Development Commissioner and that the units will be declared as a Public Utility Service under Industrial Disputes Act.
·Single point clearances system and minimum inspections requirement under State Laws / Rules would be provided.
The proposal incorporating the commitments of the State Government will be considered by an Inter-Ministerial Committee in the Department of Commerce. On acceptance of the proposal, a letter of permission will be issued to the applicant.
·Only units approved under SEZ scheme would be permitted to be located here.
·SEZ units shall abide by local laws, rules, regulations or bye-laws in regard to area planning, sewerage disposal, pollution control and the like. They shall also comply with industrial and labour laws as may be locally applicable.
·SEZ shall make security arrangements to fulfill all the requirements of the applicable laws, rules and procedures.
·SEZ should have a minimum area of 1000 hectares and at least 25% of the area is to be earmarked for developing industrial area for setting up of units.
·Minimum area of 1000 hectares will not be applicable to product specific and port / airport based SEZ.
·The minimum area for sector specific SEZ viz, IT & ITES, Biotechnology, non-conventional energy, including solar energy equipments / cell, or gem and jewellery sectors, shall be 25 acres and the minimum area for any other sector specific SEZ or port or airport, shall be 250 acres, provided that at least 50% of the area is be earmarked for developing processing area.
·Wherever the SEZ are landlocked, an Inland Container Depot (ICD) will be an integral part of the SEZ.
State Governments have a very important role to play in the establishment of SEZ. Representative of the State Government, who is a member of the Inter-Ministerial Committee on private SEZ, is consulted while considering the proposal. Before recommending any proposals to the Ministry of Commerce & Industry (Department of Commerce), States must ensure that they are in a position to supply basic inputs like water, electricity, etc.
For setting up a manufacturing, trading or service unit in SEZ, 3 copies of project proposal in the format prescribed are to be submitted to the Development Commissioner of the SEZ.
All approvals are to be given by the Unit Approval Committee headed by the Development Commissioner. Clearance from the Department of Policy and Promotion / Board of Approvals, wherever required will be obtained by the Development Commissioner, before the Letter of Intent is issued.
All State level clearances will be given at a single point i.e. Development Commissioner or through a committee constituted under him. The application for all such clearance is to be submitted with Development Commissioner.