The Ministry of Commerce and Industry in its Notification dated 17th December 2019 has published the Special Economic Zones (3rd Amendment) Rules, 2019 which alters the requirements of minimum land area for setting up a class or classes of Special Economic Zone previously provided under the Special Economic Zones Rules, 2006. The Amendment shall be effective from 20th December 2019.
The Minimum area of land for a class or classes of Special Economic Zone as prescribed by the Central Government shall be as follows:
- A Special Economic Zone or Free Trade Warehousing Zone other than a Special Economic Zone for Information Technology or Information Technology enabled Services, Biotech or Health (other than hospital) service, shall have a contiguous land area of 50 hectares or more, Provided that in case a Special Economic Zone is proposed to be set up in the States of Assam, Meghalaya, Nagaland, Arunachal Pradesh, Mizoram, Manipur, Tripura, Himachal Pradesh, Uttarakhand, Sikkim, Goa or in a Union territory, the area shall be 25 hectares or more
- The minimum processing area in any Special Economic Zone cannot be less than 50% of the total area of the Special Economic Zone.
- There shall be no minimum land area requirement for setting up a Special Economic Zone for Information Technology or Information Technology enabled Services, Biotech or Health (other than hospital) service, but a minimum built up processing area requirement shall be applicable.
- In case of a Special Economic Zone for Information Technology or Information Technology enabled Services, letter of approval shall be issued by the Approval Committee for services, which can be broad-banded with Information Technology
- Further, Annexure IV (which indicates the Special Economic Zones located in B1 category cities) has been omitted by the Amended Rules.
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