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Unit 13: Special Economic Zones

Sikkim, there is relaxation in minimum area for setting up SEZ as these states have land Notes
constraints owing to their smaller size. The table below gives a comprehensive explanation
regarding the minimum size, built-up area and any relaxation in setting up SEZ.
2. The SEZ units are supposed to abide by local laws, rules, regulations or bye-laws with
regard to local area planning, sewerage and disposal system, pollution control mechanism
and the like. They are also required to comply with industrial and labour laws and such
other laws/rules and regulations as may be locally applicable to other units for ensuring
better administration and management of area. Hence the SEZ developer is required to
make adequate arrangements to fulfil all the requirements of laws, rules and procedures
applicable to such SEZ.
3. Only those units that are approved under the SEZ schemes for setting up in SEZ zones are
permitted to be located in the SEZ.
4. The developer is required to ensure that at least 50% area of the SEZ shall be used for
processing purposes, such as developing industrial area for setting up such units.
Table 13.7: Minimum Area Requirement Stipulated for Various Categories of SEZs

Source: Inputs based on SEZ Act 2005 and SEZ Rules 2006

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