Govt frames norms for infrastructure in SEZs

With a view to prevent special economic zones (SEZs) from becoming a mere real estate opportunity, the central government today finalised detailed guidelines for developing social infrastructure such as schools, houses and hospitals in SEZs, besides setting a criteria for developers.

The Board of Approvals (BoA) for SEZs, which today gave final approval to 14 more proposals taking the total number of  zones approved so far to 164, has also made it mandatory for SEZ developers to invest a specific amount or have a stipulated networth to be eligible for setting up sector specific and multi-product zones.

"The BoA has broadly decided the procedure to be adopted while approving infrastructure in non-processing area of SEZs. The central government will shortly notify the list of activities that will qualify for tax exemptions," G K Pillai, special secretary in the commerce ministry, said.

The activities include building of basic infrastructure, water and sewage treatment plants, office space, shopping areas, schools, houses, hospitals, recreational and sports facilities, restaurants, power and gas connections.

In addition, multi-product zones that are sperad over a minimum area of 1,000 hectares would also be allowed to build ports, airports, banks, rail heads and golf courses.

However, developers need to have a net worth of at least Rs 250 crore and invest a minimum of Rs 1,000 crore for a multi-product SEZ. For sector-specific zones, the BoA fixed the minimum investment at Rs 250 crore or a net worth of Rs 50 crore, Pillai said.