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Unit 13: Special Economic Zones

officer in the Zone will hold the meeting. The unit shall intimate the problems it faces in Notes
advance. In the meetings, apart from the promoters, the other concerned agency with which
difficulties are being faced by the unit may also be called.

13.3.1 Administrative and Institutional Set Up of SEZ

The functioning of the SEZs is administered in a way that there shall be hassle-free regulatory
environment with minimum chances for red tape and control. The regulatory administration
mainly comprises of the Board of Approval, Approval Committee and Development
Commissioner. A Proper Officer of Customs is deputed to look after day-to-day functioning
with regard to customs administration. The Board of Approval is the apex body and is headed by
the Secretary, Department of Commerce. The Approval Committee, which deals with approval
of units in the SEZs and other related issues, acts at zone level only. A Development Commissioner,
who is also the ex-officio chairperson of the Approval Committee of the Zone, heads each Zone.

Once the Board of Approval approves an SEZ and the Central Government has notified the area
as the Special Economic Zone, units can be set up in the SEZ. All proposals for setting up of units
in the SEZ are approved at the Zone level by the Approval Committee consisting of the
Development Commissioner, customs authorities and representatives of the state government.
All post-approval clearances including grant of importer-exporter code number, change in the
name of the company or implementing agency; broad-banding diversification, etc. are given at
the Zone level by the Development Commissioner. The performances of the SEZ units are
periodically monitored by the Approval Committee and units are liable for penal action under
the provision of Foreign Trade (Development and Regulation) Act, in case of violation of the
conditions of the approval.
Figure 13.2: Overview of Institutional Framework of SEZ in India

Source: Author Constructions based on SEZ Act 2005 and SEZ Rules 2006

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