Minimum area clause for SEZ restored

The empowered group of ministers on special economic zones, today sought to finally settle the issue of size by restoring a uniform minimum area requirement of 10 hectares for information technology, biotechnology, gems and jewellery and non-conventional energy zones, as already laid out in the rules of 2006.

The EGoM, has decided to do away with the categorisation of built-up area on the basis of the population of cities. It had earlier mooted separate built-up area norms for tier-I, -II and -III cities.

There would now only be a uniform built-up area of 100,000 sq metre for IT SEZs, 50,000 sq metre for gems and jewellery, and 40,000 sq metre for bio-technology and non-conventional energy.

There would also be no employment criteria for these SEZs. With all outstanding issues resolved, the EGoM now stands dissolved.

For all other multi-product, multi-services and sector-specific zones, the area requirement would remain the same, as notified in the SEZ Rules i.e., multi-product "" 1,000 hectares; multi-services "" 100 hectares and sector-specific "" 100 hectares.

The EGoM also agreed that the minimum processing area for multi-product SEZs would be 35 per cent against 25 per cent stipulated in the SEZ rules.

There is no change in the processing area requirement, which stands at 50 per cent of the land area,.for sector specific zones

Officials said the EGoM decided that the area to be earmarked for social infrastructure like housing, schools and hospitals would be left to the approval committee of the SEZ. "The EGoM has not prescribed any limits for social infrastructure," an official said.

The Board of Approval would clear only up to 150 SEZ cases during the first six months after the notification of the SEZ Act on February 10, 2006.

"We have so far only cleared 69 SEZs," an official said, adding that there would be a review of the position after six months.

The commerce ministry would now amend the SEZ rules to incorporate changes in the area norms for gems and jewellery, biotechnology and non-conventional energy zones.

The rules would be amended to incorporate the change in the processing area.

The EGoM meeting headed by Defence Minister Pranab Mukherjee was attended by Commerce and Industry Minister Kamal Nath, Finance Minister P Chidambaram, IT and Communication Minister Dayanidhi Maran, Law Minister H R Bharadwaj and Deputy Chairman of the Planning Commission Montek Singh Ahluwalia.

In an official release Nath said the 15 functioning SEZs with an average size of 200 acres, had attracted private investments of about Rs.2,200 crore and provided employment to about 110,000 persons.

So far, approval had been given to 164 new SEZs of the private sector and the state governments.