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International Trade Procedures and Documentation

Notes

Source: SEZ Act 2005

13.2.2 Criteria for Approval

Proposals for setting up SEZ in the public/private/joint/state sector are required to meet the
following conditions:
1. The minimum size of the multi-product SEZs shall not be less than 1,000 hectares but it
would not apply to existing EPZs, which are converted into SEZs. The minimum area
requirement for SEZ for specific sectors is 10 hectares. For small states such as Goa and

Table 13.6: Defining Processing and Non-Processing Areas in SEZ

Processing Area Non-Processing Area
1. The processing area is that area in an 1. The non-processing area is the area which is
SEZ where units can be located for the intended to provide support facilities to the
manufacture of goods or rendering of SEZ processing area activities
services.
2. The processing area shall have specified 2. No vacant land in the non-processing area
entry and exit points and be fully shall be leased for business and social
secured by taking such measures purposes such as educational institutions,
approved by the board. hospitals, hotels, recreation and entertainment
facilities, residential and business complexes,
to any person except a co-developer approved
by the board.
3. The land or built-up area or free trade 3. The developer or co-developer may lease the
warehousing zone shall be given on completed infrastructure along with the
lease only to the entrepreneurs holding a vacant land.
valid Letter of Approval and shall not be
less than 5 years. The lease rights would
cease to exist on the expiry or
cancellation of the LOA.
4 The infrastructure for business or social
purpose in the SEZ as approved by the board
shall be entitled for exemptions, concession
and drawbacks.

Source: SEZ Act 2005 and SEZ rules.

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