Friday, March 23, 2007

SEZ Rules amended for procedural simplification

Our Bureau

For providing more amenities to developers, sub-contractors

New Delhi March 22 The Department of Commerce has introduced some
procedural simplification by way of amendments to the Special Economic
Zones Rules 2006 in a bid to provide more amenities to SEZ developers
and also sub-contractors undertaking work within these zones.

In a notification issued here last week, it is proposed to consider
conversion of sector-specific SEZ to multi-product SEZ to enable early
implementation of large projects by developers who may begin as
sector-specific and convert into multi-product SEZ as and when the full
land is available.

This is done in case where a developer subsequent to approval or
notification of a SEZ acquires more contiguous and vacant land, which
renders the total area available, including the area already notified as
SEZ more than the minimum area required for another class of SEZ. It is
also proposed to re-position multi-services SEZ to provide for minimum
50 per cent processing area in such SEZs (as against the extant 35 per
cent due to their placement along with multi-product SEZs.).

The amendment also provides for according exemption on construction
material purchased by contractors appointed by a unit on behalf of the
SEZ unit also. This facility has been available to developers only so far.

The rules are amended to provide for innovative security and boundaries
in place of wall and barbed wire fencing for fencing requirements. The
amended rules also extend sub-contracting provisions to developers to
enable them to use facilities like ready-mix concrete.


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