Freeze on SEZs lifted, ceiling on size of SEZs fixed at 5000 hectares

The Empowered Group of Ministers (EGOM) on Special Economic Zones (SEZs) met here today and discussed various issues relating to SEZs. It decided, inter-alia, to lift the current freeze on SEZs, with tighter rules and prescribed a ceiling on the size of SEZs, which has now been fixed at an upper limit of 5000 hectares. Shri Kamal Nath, Union Minister of Commerce & Industry, also indicated that a comprehensive rehabilitation policy was being finalised and that it would include employment to at least 1 person from each displaced family.

The Minister announced that the following decisions were taken at the EGOM meeting:

- Upper limit of the area required for multi product SEZs to be fixed at 5000 hectares. However, State Governments may prescribe a lower limit.

- The minimum processing area limit be fixed uniformly at 50% for multi product SEZs as well as sector specific SEZs. (Earlier, the minimum processing area requirement for multi-product SEZs was 35%, with a provision for relaxation upto 25% by the Board of Approvals; and it was 50% for sector-specific SEZs).

- In respect of pending applications for SEZs, these may be processed for in principle, formal approval, notifications subject to the condition that the State Governments would not undertake any compulsory acquisition of land for such SEZs.

- Notification in respect of the 83 cases of formal approvals, documents for which have been submitted by the developers may be issued by the Department of Commerce after due verification, including issues concerning any dispute relating to land. Major amongst pending notifications are Ramky Pharma City SEZ & Brandix Textiles City SEZ at Visakhapatnam, Kakinada SEZ at Kakinada, APIIC Multi Product SEZ at Visakhapatnam (Andhra Pradesh), Orient Craft Textiles SEZ at Gurgaon (Haryana), Infosys Technology SEZs at Pune (Maharashtra) & Mysore (Karnataka), Ascendas’ ITPL SEZ at Bangalore (Karnataka), Wockhardt Pharma SEZ at Aurangabad, Maharshtra Airport Development Corporation’s Multi product SEZ at Nagpur, Jindal Stainless Steel SEZ at Kalinga Nagar (Orissa), Mahindra World City SEZ at Jaipur (Rajasthan), SICOT Footwear SEZ at Kancheepuram, Cheyyar SEZ (Lotus Footwear) at Thiruvannamalai & Suzlon Infrastructure at Coimbatore (Tamil Nadu).

- In respect of other formal approvals, notifications may be issued as and when the proposals are received and verification procedures are completed.

- Ministry of Rural Development is requested to reformulate a comprehensive land acquisition act to address all relevant issues.

- A comprehensive Resettlement and Rehabilitation Policy will be worked out ensuring livelihood from the project to at least one person from each displaced family.

Regarding the decisions on processing area, minimum size requirement etc., Shri Kamal Nath told newsmen after the meeting that "the decisions will be applicable to all SEZs, including those which have already been notified".

Source : Press Information Bureau

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