Policy for Special Economic Zones, 2015

Context & Objective

The Policy for Special Economic Zones – 2015 aims to create an internationally competitive business environment for an SEZ and stimulate more efficient use of local resources.

Thrust Sectors

IT/ITES, Bio Technology, Electronic System Design and Manufacturing, Automobile and Auto-component manufacturing, Heavy and Light Engineering goods, Leather, Handlooms and Handicrafts including coir, Textiles including garments and apparels, Agro and Food Processing Industries including Marine Products, Ship building and repairing, Gems and Jewellery, Downstream and Ancillary Industries based on primary metal, Petroleum, Chemical and Petrochemical and their downstream Industries, Pharmaceuticals and Tourism.

Ease of Doing Business

  • Industries Department as the nodal department and IPICOL as the nodal agency for all SEZs.
  • A three-tier single window clearance mechanism to facilitate speedy implementation of industrial projects is in place
  • For Sector specific SEZ proposals, IPICOL may scrutinize in consultation with line departments.
  • Provision for declaration as Public Utility Services
  • Appointment of a Development Commissioner (DC) for each SEZ

Infrastructure & Utilities

  • Enabling environment to facilitate uninterrupted supply of quality power to the SEZs and the units therein
  • The units within the SEZ would be permitted to set up Captive Power Plants (CPPs).
  • The CPPs in the SEZ will also be permitted to establish grid connectivity for evacuation subject to agreement with State Transmission Utility.
  • Developer, Co-Developer and the units may procure power from any source through Open Access
  • State Government to facilitate allocation of water available at nearby source for use and obtaining of necessary approvals required from Statutory Authorities
  • Government Land shall be provided to SEZ Developers at concessional rates and IDCO lands shall be leased.
  • Preferential treatment to SEZs dedicated to Thrust and Priority sectors and also to large employment generating sectors.

Incentive framework

All the concessions and exemptions stated below are applicable for the Developer and Co-Developer as well as the contractors and sub-contractors appointed by the Developer and Co-Developers.

Stamp Duty Exemption 100% exemption on fees payable on transfer of land and/or built up space, loan agreements, credit deeds and mortgage executed.
VAT exemption 100% exemption from VAT payable on sales and transactions.
Entry Tax exemption 100% exemption from the payment of Entry Tax on sales and transactions.
Electricity Duty 100% exemption from the payment of Electricity duty on sales and transactions.