Special Economic Zone
In order to infuse fresh interest of investors in the Special Economic Zones, (SEZ) the government is revisiting to overhaul the entire SEZ policy including ensuring hassle free land acquisition by relaxing the minimum area requirement for more sectors in the final amendments in the rules. In fact, the department has identified agro-processing SEZs as the main thrust area and plans to cut minimum land requirement from 100 to 10 hectares for agro-processing SEZs. Among the changes being initiated included halving of the area requirement for setting up of multi-services SEZs to 50 hectares from 100 hectares. Multi-services SEZs would be considered on a par with single-product SEZs. As per the new changes, SEZ developers will also be able to add another sector on additional contiguous 50 hectares on multi-product SEZs. It may be recalled that the government in its attempt push exports in April had halved the minimum area requirement for single-product SEZs to 50 hectares and that for multi-product SEZs to 500 hectares. While the minimum land requirement norm for IT SEZs was scrapped, it was left unchanged for multi-services SEZs but these changes, however, have not yet been implemented.