Oct 31, 2014
Category: General
Posted by: sbsreddy
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CMS - 1.11.11 - San Cristobal


Sub : Formulation of Guidelines by Ministry of Commerce & Industry relating to development of social infrastructure in Multi-product SEZ, Sector-specific SEZs and IT Sector SEZs etc

As you are aware that SEZ Act, 2005 and SEZ Rules, 2006 have been made operational w.e.f. 10.2.06. The SEZ Rules, 2006 have been amended further by Ministry of Commerce & Industry vide a notification issued on 10/8/06. As per the amendment carried out in the Sub-Rule 10 of Rule 11, now the following provision has been added:-

“Provided further that infrastructure for business or social purposes in the Special Economic Zone, as may be approved by the Board, shall be eligible for exemptions, concessions and drawback.”

Accordingly, now a developer will be entitled for exemption, concession and drawback on the business or a social infrastructure developed in accordance with the approval granted by the Board of Approval. Ministry of Commerce has further clarified by its Instruction No. 6/2006 dated 3/8/06 that the size of social infrastructure like residential complex, hotels, hospital, school and other similar facilities shall be decided by the Approval Committee based on the guidelines to be issued by
the Board of Approval. The guidelines are under preparation. Any infrastructure created in access thereof shall not be eligible for any duty and tax concessions to the developer or co-developer as provided under Section 26 and 27 of the SEZ Act, 2005.

In view of the above stated facts, Ministry of Commerce & Industry is in the process of formulating guidelines for approval of the size of the social infrastructure in the Multi-Product SEZ, Sector-specific SEZ, IT Sector SEZ etc. The draft guidelines are likely to be finalized by 15th of this month, which will then be circulated to other departments of the Government of India. The Board of Approvals meeting has been scheduled to be held on 21/9/06 and these guidelines are likely to be finalized in the BoA meeting. Hence I suggest that you should provide your inputs on these proposed guidelines immediately to us so that your suggestions could be taken into consideration while formulating these guidelines. I request that you send your suggestions to me immediately, in any case latest by 11th September, 2006 so that all your suggestions could be placed before the Ministry
of Commerce & Industry for consideration. Suggestions may please be given on the following issues:-

i) Suggestions on the size of the social infrastructure required like housing, hospitals, educational institutions, food courts, gymnasium, retail outlet, shopping malls, power requirement or any other facility required etc ;

ii) These suggestions may be given separately for IT Sector, Sector-specific SEZ, Multiproduct SEZ, Gems & Jewellery SEZ, Bio-Technology Sector SEZ etc.;

iii) While proposing the requirement of the social infrastructure, the criteria as laid down nationally or internationally may please be adopted. For instance in working out as to how many beds hospital should be approved in a Multi-product SEZ, one may have to see how many workers are employed in the Multi-product SEZ and what is the ratio of number of beds to the total people working in the SEZ. For calculating the size of different social infrastructure, criteria as laid down nationally or internationally may please be adopted and criteria should be specifically indicated in your suggestions. International and national guidelines, based on which you are making the suggestions, copies/extracts of these suggestions may also be forwarded.

This may please be treated as urgent.